When reporting on financial statements that include only summarized totals of account balances,the auditors' conclusion should state whether the information in the summary financial statements
A)Is complete with respect to disclosures required by the SEC.
B)Is fairly stated,in all material respects,in accordance with generally accepted accounting principles.
C)Is consistent,in all material respects,with the prior years' summary financial statements.
D)Is fairly stated,in all material respects,in relation to the complete financial statements.

Question

Quizplus · Accepted Answer

When reporting on financial statements that include only summarized totals of account balances, the auditor's conclusion should state whether the information in the summary financial statements is fairly stated, in all material respects, in relation to the complete financial statements. Option A is incorrect because disclosing information required by the SEC is the responsibility of the preparer of financial statements, not the auditor. Option B is incorrect because summarizing account balances does not constitute financial statements, and GAAP requires complete financial statements. Option C is incorrect because consistency with prior years' summary financial statements is not sufficient for providing assurance on the financial statements.

When Reporting on Financial Statements That Include Only Summarized Totals