Management of Thurman Corporation included additional supplementary information in documents that…

Management of Thurman Corporation included additional supplementary information in documents that include the audited financial statements for the year ended December 31, 2016. Management has asked its audit firm, Wally, CPAs, whether they can report on the supplementary information. Which of the following conditions would preclude Wally, CPAs, from conducting this engagement?

(1) The supplementary information is derived from the accounting records used to generate the basic financial statements.

(2) The supplementary information covers the period January 1, 2016, through February 15, 2017.

(3) Wally’s opinion on the basic financial statements was unqualified.

(4) When evaluating supplementary information, Wally plans to use the same materiality threshold as that used in the audit of the basic financial statements.

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