ExpertMedium1 markMultiple Choice
CPA · Question 39 · Area IV: Reporting
Which of the following statements is CORRECT regarding the auditor's responsibility for 'Other Information' included in the annual report containing the audited financial statements?
Which of the following statements is CORRECT regarding the auditor's responsibility for 'Other Information' included in the annual report containing the audited financial statements?
Answer options:
A.
The auditor must audit the other information and express an opinion on it.
B.
The auditor has no responsibility for other information.
C.
The auditor must read the other information to identify material inconsistencies with the audited financial statements.
D.
The auditor must obtain a representation letter specifically for the other information.
How to approach this question
Other Information (OI) = Read for inconsistencies. Supplementary Information (RSI) = Perform limited procedures. Financials = Audit.
Full Answer
C.The auditor must read the other information to identify material inconsistencies with the audited financial statements.✓ Correct
The auditor's responsibility for Other Information is limited to reading it to identify material inconsistencies with the audited financial statements or material misstatements of fact.
Common mistakes
Thinking the auditor audits or opines on the Annual Report text.
Practice the full CPA AUD Practice Exam 4
78 questions · hints · full answers · grading
More questions from this exam
Q01A CPA firm is performing an audit of a nonissuer, TechInnovate Inc. The engagement partner's spou...HardQ02An auditor is performing an audit of an issuer, Global Corp, in accordance with PCAOB standards. ...HardQ03A CPA is performing an audit of a county government entity that receives federal financial assist...HardQ04During the audit of an employee benefit plan subject to ERISA, the auditor discovers that the pla...HardQ05An auditor is evaluating the 'integrity' principle of the AICPA Code of Professional Conduct. Whi...Medium