What Is an Auditor's Responsibility for Supplementary Information,such as Segment

question 51

Multiple Choice

What is an auditor's responsibility for supplementary information,such as segment information,that 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 assist in preparing the supplementary information.
• 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:

Factor

An element that contributes to a particular result or situation, often used as a variable in experiments and statistical analysis.

Levels

Distinct and gradated stages within a hierarchy or process.

Factor

A variable that is manipulated in an experiment to determine its effect on the dependent variable, or a value that influences results in various contexts.

Factorial ANOVA

A statistical test used to determine the effect of two or more independent variables at multiple levels on a dependent variable.