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

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When issuing a report on selected financial data included in an audited document, what should be noted?

  1. The report must include data derived from the auditor's financial statements.

  2. The report should highlight prospective results that may not be achieved.

  3. The presentation must comply with a special purpose framework.

  4. The report should restrict its use to specified users.

The correct answer is: The report must include data derived from the auditor's financial statements.

When issuing a report on selected financial data included in an audited document, it is essential that the report must include data derived from the auditor's financial statements. This requirement underscores the need for accuracy and reliability in financial reporting. The selected financial data should be a reflection of the audited financial statements to ensure that it carries the weight of an independent audit, providing assurance to the users that the figures presented are credible and have been subjected to the auditor's scrutiny. The relationship between the selected financial data and the audited financial statements is crucial, as it ensures that the auditor's conclusions and assessments inform the data being reported. This helps maintain transparency and builds trust with the report's users, which is fundamental in financial reporting and auditing standards. It ensures that users can confidently rely on the reported data, knowing it is backed by a certified audit process. In contrast, while notes about prospective results may provide useful context, they do not replace the requirement for the data to come from audited sources. Similarly, compliance with a special purpose framework is not a universal requirement for all reports on selected financial data but rather pertains to specific reporting frameworks. Lastly, though restricting the use of the report is advisable for certain types of engagements, it is not primarily tied to the fundamental requirement that the

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