Final answer:
The auditor must state whether the condensed financial statements are fairly stated. The correct answer is therefore a. True, as the auditor's role is to assure the accuracy of these statements in relation to the fully audited financial statements.
Step-by-step explanation:
The question relates to the role of an auditor when reporting on condensed financial statements that have been derived from fully audited financial statements. In this scenario, the auditor's opinion must indicate whether the information presented in the condensed financial statements is fairly stated in all material respects. This specifically means that the auditor should give an assurance that these condensed statements give a true and fair view without any material misstatements. Therefore, the correct answer to the question is a. True. The auditor's opinion can be unqualified if the condensed financial information accurately reflects the audited ones, or it can be adverse if there are material discrepancies. However, the primary obligation is to determine and report on the fair presentation of the condensed financial information.