B. The auditor should report on the information accompanying the basic financial statements
only if the auditor participated in its preparation.
C. The auditor should report on the information accompanying the basic financial statements
only if the auditor did not participate in its preparation.
D. The auditor should report on all the information included in the document.

Answer(s): D
Explanation:
Choice "d" is correct. When an auditor submits a document containing audited financial
statements to the client or others, the auditor has a responsibility to report on all the information
included in the document. Choice "a" is incorrect. The auditor does have additional reporting
responsibilities concerning information that accompanies the basic financial statements in an
auditor-submitted document. Choice "b" is incorrect.
The auditor has responsibility to report on any additional information regardless of whether the
auditor participated in the preparation of the information. Choice "c" is incorrect. The auditor has
reporting responsibilities regardless of whether the auditor participated in the preparation of the
information.
QUESTION: 116
When audited financial statements are presented in a client's document containing other
information, the auditor should:

A. Perform inquiry and analytical procedures to ascertain whether the other information is
reasonable.
B. Add an explanatory paragraph to the auditor's report without changing the opinion on the
financial statements.
C. Perform the appropriate substantive auditing procedures to corroborate the other information.
D. Read the other information to determine that it is consistent with the audited financial
statements.

Answer(s): D
Explanation:
Choice "d" is correct. The auditor should read the "other information" in a client's document
containing audited FS to determine that it is consistent with the audited FS. Choice "a" is
incorrect. Performing analytical procedures or any other procedure is not necessary. Choice "b"
is incorrect. An explanatory paragraph is not required. Choice "c" is incorrect. The auditor has
no obligation to perform any procedure to corroborate "other information" contained in a
document such as an annual report.
QUESTION: 117
An auditor may report on condensed financial statements that are derived from complete
audited financial statements if the:

A. Auditor indicates whether the information in the condensed financial statements is fairly
stated in all material respects.
B. Condensed financial statements are presented in comparative form with the prior year's
condensed financial statements.
C. Auditor describes the additional review procedures performed on the condensed financial
statements.

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