The following questions concern information accompanying basic financial statements. Choose the best response. a. The Form 10-K filed by management of a public company includes a section on management’s discussion and analysis (MD&A) in addition to the annual financial statements. Which of the following best describes the auditor’s responsibility for the MD&A information?
(1) The auditor must perform sufficient appropriate audit procedures to opine on the MD&A information.
(2) The auditor has no responsibilities related to the MD&A disclosures.
(3) The auditor must read the MD&A information to determine if there is any material inconsistency with the audited financial statements.
(4) The auditor must provide a disclaimer of opinion related to the MD&A information.
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