ExpertCPA · Question 09 · Area IV: Forming Conclusions and Reporting
An auditor is engaged to report on summary financial statements derived from the audited financial statements of a nonissuer. The auditor issued an unmodified opinion on the audited financial statements. The auditor concludes that the summary financial statements are consistent, in all material respects, with the audited financial statements. Which of the following statements is TRUE regarding the auditor's report on the summary financial statements?
An auditor is engaged to report on summary financial statements derived from the audited financial statements of a nonissuer. The auditor issued an unmodified opinion on the audited financial statements. The auditor concludes that the summary financial statements are consistent, in all material respects, with the audited financial statements. Which of the following statements is TRUE regarding the auditor's report on the summary financial statements?
Answer options:
The auditor should issue a 'fair presentation' opinion on the summary financial statements.
The auditor should state that the summary financial statements are consistent, in all material respects, with the audited financial statements.
The auditor should refer to the summary financial statements as 'unaudited' in the opinion paragraph.
The auditor must withdraw if the summary financial statements do not contain all disclosures required by GAAP.
How to approach this question
Full Answer
Common mistakes
Practice the full CPA AUD Practice Exam 3
78 questions · hints · full answers · grading