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:

Equipment Costing

The process of tracking and analyzing the costs associated with the purchase and maintenance of equipment.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Maturity Date

The specified date on which the principal amount of a bond or other financial instrument is due to be repaid.

Interest Rate Changes

Variations in the cost of borrowing or the return on savings that occur due to economic policy or market conditions.