FYI - Audits of Single F/S and Specific Elements, Accounts, or Items (a) If the Specific Element is Based on Stockholders' Equity—The auditor should obtain sufficient appropriate evidence to enable the auditor to express an opinion about financial position. (This effectively means that the auditor should have audited the whole balance sheet in order to report on an element based on stockholders' equity.) (b) If the Specific Element is Based upon the Entity's Net Income or the Equivalent—The auditor should obtain sufficient appropriate evidence to enable the auditor to express an opinion about both financial position and results of operations. (This effectively means that the auditor should have audited the complete set of financial statements in order to report on an element based on net income.)