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:

Pairwise Vote

A voting system where candidates are compared and voted on in pairs, with the winner being the one who wins the most direct comparisons.

Unanimity

A condition in decision-making where all members of a group fully agree on a specific decision or outcome.

Independence of Irrelevant Alternatives

A decision-making principle asserting that the relative preference between two options should not be affected by the introduction of a third irrelevant option.

Borda Count Election

A voting method that involves ranking candidates in order of preference, with points assigned based on position in the ranking, to determine the winner.