D

The following statements relate to auditor reporting on statements prepared using special-purpose financial reporting frameworks. For each, indicate whether the statement is correct or incorrect. A special-purpose financial reporting framework is any framework other than GAAP. Some, but not all, special-purpose frameworks require an indication that the financial statements are intended solely for certain specified users. An audit report on financial statements that are prepared using a special-purpose framework must include an emphasis-of-matter paragraph alerting users that the financial statements were prepared in accordance with the framework. An audit report on financial statements that are prepared using a special-purpose framework must in all circumstances include a description of the purposes for which the statements are prepared. An audit opinion on financial statements that use a special-purpose framework may be unmodified. The Attestation Standards, not the Statements on Auditing Standards apply to engagements involving special purpose frameworks. If a regulatory agency requires a particular layout for the audit report, the auditor may be able to use that layout rather than the suggested report included in the Professional Standards. An audit report on financial statements that are prepared using a special-purpose framework will indicate that the audit was conducted in accordance with the special-purpose financial reporting framework auditing standards