An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include all of the following except:
A) An opinion as to whether the basis of accounting used is appropriate under the circumstances.
B) An opinion as to whether the financial statements are presented fairly in conformity with the other basis of accounting.
C) Reference to the note to the financial statements that describes the basis of presentation.
D) A statement that the basis of presentation is a basis of accounting other than generally accepted accounting principles.

Question

Quizplus · Accepted Answer

An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include an opinion as to whether the financial statements are presented fairly in conformity with the other basis of accounting (option B), a reference to the note to the financial statements that describes the basis of presentation (option C), and a statement that the basis of presentation is a basis of accounting other than generally accepted accounting principles (option D). Option A is incorrect because the auditor should express an opinion on whether the financial statements are presented fairly in conformity with the other basis of accounting, not on whether the basis of accounting used is appropriate under the circumstances.

An Auditor's Report on Financial Statements Prepared in Accordance with a Basis