Which of the Following Is True Regarding the Auditor's Responsibility

question 6

Multiple Choice

Which of the following is true regarding the auditor's responsibility to report on information accompanying the basic financial statements in a client-prepared document?

• A) The auditor may report on information accompanying the basic financial statements in a client prepared document only if he or she has been specifically engaged to do so.
• B) The auditor is required to express an opinion on whether information accompanying the basic financial statements in a client-prepared document is fairly stated in all material respects in relation to the financial statements taken as a whole.
• C) If an auditor chooses to report on information accompanying the basic financial statements in a client prepared document, the report should include a description of the character of the audit work performed.
• D) If an auditor chooses to report on information accompanying the basic financial statements in a client prepared document, the report should include an opinion on the information but should not describe the character of the audit work performed.

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Definitions:

Eyespot

A pigmented organelle found in some algae and protozoa, allowing the organism to sense light direction.

Giardiasis

An infection of the small intestine caused by the protozoan parasite Giardia lamblia, leading to diarrhea, abdominal pain, and weight loss.

Diplomonads

A group of flagellated protozoa, often parasites, with two nuclei and multiple flagella, found in anaerobic environments.

Waterborne Disease

Illnesses caused by infectious agents that are transmitted through contaminated water.