Investment and property schedules are presented for purposes of additional analysis in an
auditor submitted document. The schedules are not required parts of the basic financial
statements, but accompany the basic financial statements. When reporting on such additional
information, the measurement of materiality is the:

A. Same as that used in forming an opinion on the basic financial statements taken as a whole.
B. Lesser of the individual schedule of investments or schedule of property taken by itself.
C. Greater of the individual schedule of investments or schedule of property taken by itself.
D. Combined total of both the individual schedules of investments and property taken as a
whole.

Answer(s): A
Explanation:
Choice "a" is correct. When reporting on additional information accompanying the audited
financial statements, the measure of materiality would be the same as that used in forming an
opinion on the financial statements taken as a whole.
Choices "b", "c", and "d" are incorrect, based on the above Explanation.
QUESTION: 114
What is an auditor's responsibility for supplementary information which is outside the basic
financial statements, but required by the FASB?

A. The auditor has no responsibility for required supplementary information as long as it is
outside the basic financial statements.
B. The auditor's only responsibility for required supplementary information is to determine that
such information has not been omitted.
C. The auditor should apply certain limited procedures to the required supplementary
information, and report deficiencies in, or omissions of, such information.
D. The auditor should apply tests of details of transactions and balances to the required
supplementary information, and report any material misstatements in such information.

Answer(s): C
Explanation:
Choice "c" is correct. For additional supplementary information required by the FASB, the
auditor should apply certain limited procedures to the information, and report deficiencies in or
omissions of such information. Choice "a" is incorrect. Required supplementary information is
considered an essential part of financial reporting, and therefore certain limited procedures
should be applied by the auditor. Choice "b" is incorrect. For additional supplementary
information required by the FASB, the auditor should apply certain limited procedures to the
information, and report deficiencies in or omissions of such information. Choice "d" is incorrect.
Certain limited procedures should be applied to required supplementary information, but this
information need not be audited.
QUESTION: 115
Which of the following best describes the auditor's reporting responsibility concerning
information accompanying the basic financial statements in an auditor-submitted document?

A. The auditor has no reporting responsibility concerning information accompanying the basic
financial statements.

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