[adsfasf]

If supplementary information in a document accompanying the basic financial statements 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.  Conformity with standards established by the AICPA.
B.  Accordance with generally accepted auditing standards.
C.  Conformity with generally accepted accounting principles.
D.  All material respects in relation to the financial statements as a whole.

Hello can anybody help me with this question? Correct answer is D. However, I am not sure why C is not correct. Shouldn’t all supplementary information comply with GAAP?

[sulaiman]

Supplementary information are not all GAAP such summaries but the mean concern with the auditor is whether they are fairly stated in relation to the FS as a whole and not just false information that has no basis

[SchruteBeet]

My guess is that supplementary information accompanying financial statements has to be prepared in all material aspects in conformity with the applicable financial reporting framework. That doesn't necessarily have to be GAAP which is probably why D is the correct answer.

[adsfasf]

Thank you all

[Author]

Replies