[lk]

Disagreed with Becker’s explanation. See my argument in bold. I selected d. Becker’s explanation doesn’t make any sense to me at all.

Which of the following reporting options is least likely with regard to supplementary information that is required by GAAP?
a.A disclaimer of opinion is issued on supplementary information.

–> possible and likely to show on the report. just to disclaim if you didn’t audit it.

b.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.

–>if you audited supplementary info, this is fair.

c.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.
–>if you audited it, of course you include the opinion. and if you want to restrict the use of it, you include a statement mention the restriction. if you want to do them both together, you can do it. so you include opinion and restriction at a time. this is possible and likely to happen.

d.The auditor’s report on the financial statements includes an other-matter paragraph stating that the auditor has applied the required procedures.
–>fair to include other-matter paragraph on supplementary info. but i’ve never heard of other-matter paragraph specifically stressing that you have applied the required procedure.

Explanation
Choice “c” is correct. There is no requirement that the auditor’s report on supplementary information required by GAAP be restricted. –> of course it’s not required to be restricted. but this question here is talking about likelihood, not requirement. the fact that opinion on supplementary info and restriction statement are not required to show up together doesn’t explain the likelihood that they do show up together. it is possible and likely that an opinion and restriction show up at the same time

Choice “d” is incorrect. An auditor is not required to audit required supplementary information, but the audit report should include an other-matter paragraph related to the supplementary information. When appropriate, this other-matter paragraph should state that the required supplementary information is included and the auditor has applied the required procedures. –>this question and choice d is not talking about required supplementary information. not sure where this explanation get that from. right, it should include other-matter paragraph. but how like is the other-matter paragraph gonna include that auditor has applied the required procedures?

Choice “a” is incorrect. An auditor is not required to reference other information in the financial statement audit report, but may choose to add an other-matter paragraph disclaiming an opinion on the other information.

Choice “b” 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.