information.
B. Express negative assurance on the information, if review procedures have been
appropriately performed.
C. 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.
D. 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.
QUESTION: 108
An auditor may report on condensed financial statements that are derived from complete
financial statements if the:

A. Condensed financial statements are distributed to stockholders along with the complete
financial statements.
B. Auditor describes the additional procedures performed on the condensed financial
statements.
C. 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.
D. 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.
QUESTION: 109
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:
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