Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2025 - Free CPA Practice Questions and Study Guide

The auditor's responsibility regarding required supplementary information from the Financial Accounting Standards Board (FASB) involves applying limited procedures and adding an other-matter paragraph in the audit report. This responsibility stems from the fact that required supplementary information is not part of the basic financial statements but is considered important for users to understand the financial statements better.

When an auditor applies limited procedures, they typically perform inquiries and analytical procedures to assess whether the supplementary information is consistent with the audited financial statements and does not contain material misstatements. If the auditor identifies any issues or inconsistencies, they can address these in an other-matter paragraph, providing users with relevant context regarding the supplementary information.

This approach reflects the auditor's role in ensuring transparency and maintaining the credibility of the financial reporting process while acknowledging that their main responsibility lies with the financial statements themselves. The limited procedures do not extend to full audits of the supplementary information, which is why this option is the most accurate representation of the auditor's responsibilities in this context.