Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

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Which of the following reporting options regarding supplementary information is least likely?

  1. A. A disclaimer of opinion is issued on supplementary information

  2. B. The auditor's report includes an opinion on the supplementary information

  3. C. An other-matter paragraph states the auditor has applied required procedures

  4. D. The auditor's report includes both an opinion and a statement regarding the use of the report

The correct answer is: D. The auditor's report includes both an opinion and a statement regarding the use of the report

The correct answer is that the reporting option which is least likely involves the auditor’s report including both an opinion and a statement regarding the use of the report. In auditing practices, the treatment of supplementary information generally revolves around how it is presented in relation to the financial statements. When supplementary information is provided, auditors typically decide whether it is fairly stated, in all material respects, in relation to the financial statements taken as a whole. An auditor's report may include a disclaimer of opinion on supplementary information if there are significant limitations or if the information is not presented in accordance with the applicable framework. Thus, the option discussing a disclaimer of opinion is plausible under specific circumstances. Additionally, the inclusion of an opinion on the supplementary information itself is possible if the auditor believes that the supplementary information is fairly presented and can be measured against required criteria. Similarly, stating that the auditor has applied the required procedures in an other-matter paragraph acknowledges the auditor’s actions related to the supplementary information without expressing a specific opinion, which is also common practice. When considering these various approaches, the inclusion of both a definitive opinion and a statement regarding the use of that report in relation to supplementary information is not standard. Auditors typically focus on providing either an opinion or a note

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