An Annual Shareholders' Report Includes Audited Financial Statements and Contains

question 802

Multiple Choice

An annual shareholders' report includes audited financial statements and contains supplementary information required by GAAP. Is it permissible for the auditor to report on such information?

• A) No, because such reporting may lead to the belief that the auditor is responsible for the information.
• B) No, because the auditor has no responsibility to read the other information in a document containing audited financial statements.
• C) Yes, provided the report provides negative assurance only.
• D) Yes, provided the auditor performs sufficient audit procedures to determine whether the information is fairly stated, in all material respects, in relation to the financial statements.

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