A. Be limited to data derived from the audited financial statements.
B. Be distributed only to senior management and the board of directors.
C. State that the presentation is a comprehensive basis of accounting other than GAAP.
D. 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.
QUESTION: 110
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:

A. Accordance with generally accepted auditing standards.
B. Conformity with generally accepted accounting principles.
C. Al material respects in relation to the basic financial statements taken as a whole.
D. 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."
QUESTION: 111
An auditor concludes that there is a material inconsistency in the other information in an annual
report to shareholders containing audited financial statements. The auditor believes that the
financial statements do not require revision, but the client is unwil ing to revise or eliminate the
material inconsistency in the other information. Under these circumstances, what action would
the auditor most likely take?

A. Consider the situation closed because the other information is not in the audited financial
statements.

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