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

question 20

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 is required to read the other information and consider whether such information is consistent with the information in the financial statements.
• 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:

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the realm of current awareness but that influence behaviors and emotions.

Negative Thinking

A pattern of focusing on distressing and unfavorable outcomes or interpreting situations pessimistically.

Classically Conditioned

The process by which an individual learns to associate an initially neutral stimulus with a biologically potent stimulus, producing a reflexive response.

Client-Centered Therapy

An insight therapy that emphasizes providing a supportive emotional climate for clients, who play a major role in determining the pace and direction of their therapy.