When audited financial statements are presented in a document containing other information, the auditor

When audited financial statements are presented in a document containing other information, the auditor 

A. Has an obligation to perform auditing procedures to corroborate the other information.
B. Is required to issue an "except for" qualified opinion if the other information has a material misstatement of fact.
C. Should read the other information to consider whether it is inconsistent with the audited financial statements.
D. Has no responsibility for the other information because it is not part of the basic financial statements.


Answer: Should read the other information to consider whether it is inconsistent with the audited financial statements.

In a lease that is appropriately recorded as a direct-financing lease by the lessor, the unearned income

a. should be amortized over the period of the lease using the effective interest method.
b. should be amortized over the period of the lease using the straight-line method.
c. does not arise.
d. should be recognized at the lease's expiration.


Answer: should be amortized over the period of the lease using the effective interest method

An auditor may reasonably issue an "except for" qualified opinion for 

A. A scope limitation or an unjustified accounting change.
B. A scope limitation, but not an unjustified accounting change.
C. An unjustified accounting change, but not a scope limitation.
D. Neither an unjustified accounting change nor a scope limitation.


Answer: A scope limitation or an unjustified accounting change.