When interim financial information is presented in a footnote to annual financial statements,the standard audit report on the annual financial statements should
A) Not mention the interim information unless there is an exception that the auditors need to include in the report.
B) Contain an audit opinion paragraph that specifically mentions the interim financial information if it is not in conformity with the GAAP.
C) Contain an extra paragraph that gives negative assurance on the interim information if it has been reviewed.
D) Contain an extra explanatory paragraph if the interim information note is labeled "Unaudited."

Question

Quizplus · Accepted Answer

If the interim financial information is presented in a footnote to annual financial statements, the standard audit report on the annual financial statements should not mention the interim information unless there is an exception that the auditors need to include in the report. The audit report only provides assurance on the annual financial statements and not on the interim financial information.

When Interim Financial Information Is Presented in a Footnote to Annual