Final answer:
The accurate statement among the options given is D) The auditor can issue a separate report on the supplementary information; it does not need to be part of the report on the financial statements. Auditors provide assurance that the supplementary information is fairly stated, but they do not necessarily have to express an opinion on it.
Step-by-step explanation:
Which of the Following is Correct Regarding Supplementary Information in Auditing?
When dealing with supplementary information in auditing, it is important to note that the auditor is not required to express an opinion on the supplementary information. Instead, the auditor's role is typically to provide assurance that such information is fairly stated, in all material respects, in relation to the financial statements as a whole. The correct statement regarding the treatment of supplementary information in auditing is option D) The auditor can issue a separate report on the supplementary information; it does not need to be part of the report on the financial statements. This is because while the auditor may provide assurance on the reliability of the supplementary information, this does not necessarily require an opinion, and it can be reported on separately from the financial statements.
Option A is incorrect because the auditor may provide assurance on supplementary information without providing a formal opinion as they do on the financial statements. Option B is also incorrect, as generally the same materiality threshold used in forming an opinion on the basic financial statements is applied to the supplementary information. Lastly, option C is not always correct because the auditor's conclusion on the supplementary information is related to the findings on the basic financial statements, and an adverse opinion on the latter could affect the report on supplementary information.