An auditor determines that the entity is presenting certain supplementary financial disclosures of pension information that are requires by the GASB. Under these circumstances, the auditor should

  1. Add an explanatory paragraph to the auditor’s report that refers to the required supplementary information.
  2. State that this audit is not being performed in accordance with generally accepted auditing standards.
  3. Document in the working papers that the required supplementary information is presented, but should not apply any procedures to the information.
  4. Compare the required supplementary information for consistency with the audited financial statements.

Comfort letters ordinarily are

Addressed to the client’s

Signed by the client’s

a.

Audit committee

Independent auditor

b.

Underwriter of securities

Senior management

c.

Audit committee

Senior management

d.

Underwriter of securities

Independent auditor