All of the Following Are True with Respect to the Auditor's

question 35

Multiple Choice

All of the following are true with respect to the auditor's consideration of information other than the audited financial statements that are included in an entity's annual report except:

• A) The auditor is under no obligation to perform audit procedures on this other information.
• B) The auditor must consider whether the other information is consistent with the information contained in the audited financial statements.
• C) The auditor must request that material inconsistencies be corrected.
• D) The auditor must perform audit procedures on this other information.

---

Definitions:

Disclosures

The act of making new or secret information known, typically in a formal report.

Financial Accounting Standards Board (FASB)

The private sector body given the primary responsibility to work out the detailed rules that become generally accepted accounting principles.

Securities and Exchange Commission (SEC)

A U.S. government agency that oversees securities transactions, activities of financial professionals, and the stock market to protect investors.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.