Ace the Audit: 2026 CPA Auditing & Attestation Exam

What should an auditor do concerning supplementary financial disclosures required by the GASB?

Compare the required supplementary information for consistency with the audited financial statements.

The correct choice involves the auditor comparing the required supplementary information with the audited financial statements for consistency. This process is crucial because the Governmental Accounting Standards Board (GASB) requires that supplementary financial disclosures provide context or additional detail beyond the basic financial statements.

When the auditor performs this comparison, they are assessing whether the supplementary information aligns with the overall financial position and results of operations presented in the main financial statements. This consistency check helps ensure that the supplementary information is not misleading and accurately reflects the financial data it is meant to support. This step is crucial as it enhances the credibility of the supplementary information and helps users of the financial statements understand the complete financial picture.

Thus, the auditor's role in evaluating this information critically contributes to transparent financial reporting and assures users that all disclosures are coherent and reliable. By engaging in this review, the auditor fulfills their responsibility to enhance the financial statement users' trust in the integrity of the information provided.

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Document that required supplementary information is presented without applying any procedures to it.

Add an additional paragraph to the auditor's report referring to the information only if there are issues.

State that the audit is not performed according to generally accepted auditing standards.