Can anyone help me with this questions? Supplementary information auditing

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  • #1551001
    adsfasf
    Participant

    If supplementary information in a document accompanying the basic financial statements 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.  Conformity with standards established by the AICPA.
    B.  Accordance with generally accepted auditing standards.
    C.  Conformity with generally accepted accounting principles.
    D.  All material respects in relation to the financial statements as a whole.

    Hello can anybody help me with this question? Correct answer is D. However, I am not sure why C is not correct. Shouldn’t all supplementary information comply with GAAP?

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  • #1551039
    sulaiman
    Participant

    Supplementary information are not all GAAP such summaries but the mean concern with the auditor is whether they are fairly stated in relation to the FS as a whole and not just false information that has no basis

     

    Done!

    #1551163
    SchruteBeet
    Participant

    My guess is that supplementary information accompanying financial statements has to be prepared in all material aspects in conformity with the applicable financial reporting framework. That doesn't necessarily have to be GAAP which is probably why D is the correct answer.

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    #1551213
    adsfasf
    Participant

    Thank you all

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