An auditor's report would be designated a special report when it is issued in connection with:

Question

Quizplus · Accepted Answer

Choice "B" is correct. An auditor's report would be designated a special report when it is issued in connection with compliance with aspects of regulatory requirements related to audited financial statements. Choice "A" is incorrect. A "review report" (not a "special report") should be issued in connection with a limited review of interim financial information of a publicly held company. Choice "C" is incorrect. Special reports are not issued in connection with the application of accounting principles to specified transactions. Choice "D" is incorrect. An auditor may compile, examine, or apply agreed-upon procedures to limited use prospective financial statements (PFS) such as a financial projection, but this would not constitute a special report.

An Auditor's Report Would Be Designated a Special Report When