CPA Test practice questions, page 13 of 13, with answer review and explanations.
Question 61
If information accompanying the basic financial statements in an auditor-submitted document has been subjected to auditing procedures, the auditor may include in the auditor's report on the financial statements an opinion that the accompanying information is fairly stated in:
Accordance with generally accepted auditing standards.
Conformity with generally accepted accounting principles.
All material respects in relation to the basic financial statements taken as a whole.
Accordance with attestation standards expressing a conclusion about management's assertions.
Question 62
An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. The auditor believes that the financial statements do not require revision, but the client is unwilling to revise or eliminate the material inconsistency in the other information. Under these circumstances, what action would the auditor most likely take?
Consider the situation closed because the other information is not in the audited financial statements.
Issue an "except for" qualified opinion after discussing the matter with the client's audit committee.
Disclaim an opinion on the financial statements after explaining the material inconsistency in a separate explanatory paragraph.
Revise the auditor's report to include a separate explanatory paragraph describing the material inconsistency.