Exam AUD topic 1 question 108 discussion

Actual exam question from AICPA's AUD

Question #: 108
Topic #: 1

If information accompanying the basic financial statements in an auditor-submitted document has been subjected to auditing procedures, the auditor may include in the auditor's report on the financial statements an opinion that the accompanying information is fairly stated in:

A. Accordance with generally accepted auditing standards.
B. Conformity with generally accepted accounting principles.
C. All material respects in relation to the basic financial statements taken as a whole.
D. Accordance with attestation standards expressing a conclusion about management's assertions.

Show Suggested Answer

Suggested Answer: C 🗳️
Choice "C" is correct. When an auditor submits a document that contains information in addition to the client's basic financial statements, and this information was subjected to auditing procedures, the auditor may include in the auditor's report an opinion that the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. This statement would follow the opinion paragraph in the standard report.
Choice "A" is incorrect. Information in an ASD is not stated in an auditor's report to be in accordance with GAAS. Instead, the auditor would state that the
"information has been subjected to the auditing procedures applied in the audit of the basic financial statements..."
Choice "B" is incorrect. The auditor would not state that ASD information was fairly stated in accordance with GAAP. The information in an ASD is in addition to that required by GAAP.
Choice "D" is incorrect. Reports on ASD are not "attest engagements."

by gemazyni at April 5, 2025, 4:11 p.m.

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