Choice "B" is correct. With respect to supplementary information required by the GASB that is placed outside the basic financial statements, the auditor should apply limited procedures to the information (to determine that it is consistent with the basic audited financial statements) and add an other-matter paragraph to the financial statement audit report.
Choice "d" is incorrect. If the information is labeled "unaudited," a disclaimer generally would not be necessary.
Choice "c" is incorrect. The other-matter paragraph is added whenever required supplementary information is presented.
Choice "a" is incorrect. The supplementary information required by the GASB is not required to be audited since it is placed outside of the basic financial statements; however, an opinion is permitted.