Question

Reports on debt compliance and similar engagements may be issued as a separate report or as part of a report that expresses the auditor's opinion on the financial statements. When they are issued as a part of the report on the financial statements, it is done by:

1) Including a separate paragraph in the report on the financial statements
2) Including a separate report after the report on the financial statements
3) Including a footnote in the report on the financial statements
4) Including a separate report before the report on the financial statements

Answer 1

Reports on debt compliance and similar engagements are issued as part of a report on financial statements by including a separate paragraph in the report.

Step-by-step explanation:

When reports on debt compliance and similar engagements are issued as part of a report that expresses the auditor's opinion on the financial statements, it is done by including a separate paragraph in the report on the financial statements.