Which of the following is true with respect to the auditors' report on summary financial statements?
A)Auditors can only issue a report on summary financial statements if they have expressed an unmodified opinion on the full financial statements.
B)The report will indicate whether the summary financial statements are fairly stated in relation to the full financial statements.
C)The report will express negative assurance on whether the summary financial statements are prepared in accordance with AICPA presentation guidelines.
D)The report will express an opinion on whether the summary financial statements present the financial condition,results of operations,and cash flows in accordance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

The auditors' report on summary financial statements will indicate whether the summary financial statements are fairly stated in relation to the full financial statements. The report does not express an opinion on whether the summary financial statements present the financial condition, results of operations, and cash flows in accordance with generally accepted accounting principles, nor does it provide negative assurance on whether the summary financial statements are prepared in accordance with AICPA presentation guidelines. Additionally, auditors may issue a separate report on summary financial statements without issuing a report on the full financial statements. Therefore, choice A is incorrect.

Which of the Following Is True with Respect to the Auditors