What is an auditor's responsibility for supplementary information,such as segment information,that is outside the basic financial statements,but required by the FASB?
A) The auditor has no responsibility for required supplementary information as long as it is outside the basic financial statements.
B) The auditor's only responsibility for required supplementary information is to assist in preparing the supplementary information.
C) The auditor should apply certain limited procedures to the required supplementary information and report deficiencies in or omissions of, such information.
D) The auditor should apply tests of details of transactions and balances to the required supplementary information and report any material misstatements in such information.

Question

Quizplus · Accepted Answer

The auditor is responsible for applying certain limited procedures to required supplementary information and reporting any deficiencies or omissions in such information. The auditor is not required to perform tests of details on this information unless it is included in the audited financial statements. Therefore, option A and D are not correct. The auditor is also not responsible for preparing the supplementary information, which makes option B incorrect.

What Is an Auditor's Responsibility for Supplementary Information,such as Segment