Cisco
CompTIA
ISC
EC-Council
EXIN
Fortinet
ITIL
Juniper
Microsoft
VMware
Avaya
SAP
Google
NVIDIA
Salesforce
Amazon
Palo Alto Networks
ISC2
Splunk
ServiceNow
All Vendors
  2. Home
  3. Exams
  4. AICPA
  5. CPA-Auditing

AICPA CPA-Auditing Exam
CPA Auditing and Attestation (AUD) (Page 23 )

Updated On: 12-Feb-2026
Page 23 of 207
PDF with 1026 Questions

Which of the following reporting options is least likely with regard to supplementary information that is required by GAAP?

  1. The auditor's report on the financial statements makes no reference to the supplementary information.
  2. A disclaimer of opinion is issued on supplementary information that is not clearly distinguished from the financial statements and is not marked "unaudited."
  3. The auditor's report on the financial statements includes both an opinion on the supplementary information and a statement restricting the use of the report.
  4. The auditor's report on the financial statements includes an opinion regarding whether the supplementary information is fairly stated in all material respects in relation to the financial statements taken as a whole.

Answer(s): C

Explanation:

Choice "c" is correct. There is no requirement that the auditor's report on supplementary information required by GAAP be restricted.
Choice "a" is incorrect. An auditor is not required to audit supplementary information, and in such cases the auditor's report on the basic financial statements would not generally include a reference to such information.
Choice "b" is incorrect.
When supplementary information that is not clearly distinguished from the financial statements is not marked "unaudited," the auditor would generally issue a disclaimer on that information.
Choice "d" is incorrect.
When the auditor chooses to apply auditing procedures to the supplementary information, he or she may express an opinion regarding whether the supplementary information is fairly stated in all material respects in relation to the financial statements taken as a whole.



When an auditor submits a document containing audited financial statements to a client, and those financial statements include supplementary information required by GAAP, the auditor may choose any of the following options, except:

  1. Express an opinion on the information, if he or she has been engaged to examine such information.
  2. Express negative assurance on the information, if review procedures have been appropriately performed.
  3. Report on whether the information is fairly stated in relation to the financial statements taken as a whole, if appropriate auditing procedures have been applied.
  4. Disclaim an opinion on the information.

Answer(s): B

Explanation:

Choice "b" is correct. The auditor would not perform a review or express negative assurance on supplementary information required by GAAP that is included in an auditor-submitted document. Choice "a" is incorrect. The auditor may express an opinion on the information, if he or she has been engaged to examine it.
Choice "c" is incorrect. The auditor may report on whether the information is fairly stated in relation to the financial statements taken as a whole, if appropriate auditing procedures have been applied. Choice "d" is incorrect. The auditor may disclaim an opinion on the information.



An auditor may report on condensed financial statements that are derived from complete financial statements if the:

  1. Condensed financial statements are distributed to stockholders along with the complete financial statements.
  2. Auditor describes the additional procedures performed on the condensed financial statements.
  3. Auditor indicates whether the information in the condensed financial statements is fairly stated in all material respects in relation to the complete financial statements from which it has been derived.
  4. Condensed financial statements are presented in comparative form with the prior year's condensed financial statements.

Answer(s): C

Explanation:

Choice "c" is correct. An auditor may report on condensed financial statements that are derived from financial statements that he or she has audited, indicating (1) that he or she has audited and expressed an opinion on the complete financial statements, (2) the date of the auditor's report, (3) the type of opinion expressed, and (4) that the information contained in the condensed financial statements is fairly stated in all material respects in relation to the complete financial statements from which it has been derived.
Choice "a" is incorrect. The condensed financial statements do not have to be distributed to the stockholders.
Choice "b" is incorrect. The audit report on condensed financial statements does not require that additional procedures be described.
Choice "d" is incorrect. Condensed financial statements do not need to be presented in comparative form with the prior year's financial statements.



An auditor is engaged to report on selected financial data that are included in a client-prepared document containing audited financial statements. Under these circumstances, the report on the selected data should:

  1. Be limited to data derived from the audited financial statements.
  2. Be distributed only to senior management and the board of directors.
  3. State that the presentation is a comprehensive basis of accounting other than GAAP.
  4. Indicate that the data are not fairly stated in all material respects.

Answer(s): A

Explanation:

Choice "a" is correct. An auditor's report on selected information included in a client-prepared document containing audited financial statements should be limited to data derived from audited financial statements.
Choice "b" is incorrect. It is not necessary to limit distribution of such a report. Choice "c" is incorrect. Selected financial data is not an "other comprehensive basis of accounting." Choice "d" is incorrect. The auditor indicates whether the selected financial data is fairly stated, in all material respects, in relation to the financial statements from which it has been derived.



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:

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

Answer(s): C

Explanation:

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."






Post your Comments and Discuss AICPA CPA-Auditing exam prep with other Community members:

Join the CPA-Auditing Discussion