Which of the Following Is Correct Regarding Supplementary Information

question 127

Multiple Choice

Which of the following is correct regarding supplementary information?

• A) The auditor must express an opinion on the supplementary information.
• B) When reporting on supplementary information, the auditor uses a different materiality threshold from that used in forming an opinion on the basic financial statements.
• C) If the auditor's report on the audited financial statements contains an adverse opinion, the auditor can still issue an unqualified opinion on the supplementary information.
• D) The auditor can issue a separate report on the supplementary information; it does not need to be part of the report on the financial statements.

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Definitions:

Ribose

A five-carbon sugar that is a key component of RNA (ribonucleic acid) and essential for various biological processes.

RNA

Ribonucleic acid, a nucleic acid present in all living cells that acts as a messenger carrying instructions from DNA for controlling the synthesis of proteins.

Structural Component

An element or part of a larger structure, which contributes to its build and integrity.

Carbohydrates

Organic compounds, consisting of carbon, hydrogen, and oxygen, that serve as a major energy source for the body; includes sugars, starches, and fibers.