What Is an Auditor's Responsibility for Supplementary Information Which Is

question 723

Multiple Choice

What is an auditor's responsibility for supplementary information which is outside the basic financial statements, but required by the FASB?

• A) The auditor has no responsibility for required supplementary information as long as it is outside the basic financial statements.
• B) The auditor's only responsibility for required supplementary information is to determine that such information has not been omitted.
• C) The auditor should apply certain limited procedures to the required supplementary information, and report deficiencies in, or omissions of, such information.
• D) The auditor should apply tests of details of transactions and balances to the required supplementary information, and report any material misstatements in such information.

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Definitions:

Honesty

The quality of being truthful, fair, and free from deceit in one's actions and statements.

Shared Leadership

A style of leadership that distributes influence among groups and individuals to achieve organizational or team goals.

Responsibility

The state or fact of being accountable or to blame for something, implying the duty to deal with something or of having control over someone.

Workgroup

A collection of individuals who come together to achieve a common goal or task, often in a professional context.