When financial statements are presented in comparative form and another firm audited the prior-years financial statements (but the other firms report is not presented with the financial statements), the auditors report on the current-year financial statements should
A.) Refer to any procedures performed by the current auditor to verify the opinion on the prior-years financial statements.
B.) Not refer to the prior-years financial statements.
C.) Refer to the report and type of opinion issued by the other firm on the prior-years financial statements.
D.) Disclaim an opinion on the prior-years financial statements.
Solution
The answer is:
C.) Refer to the report and type of opinion issued by the other firm on the prior-years financial statements.
This is done to maintain continuity from one years report to the next.
.
Science 7 - LAND and SEA BREEZE and its Characteristics
When financial statements are presented in comparative form and anothe.docx
1. When financial statements are presented in comparative form and another firm audited the prior-
years financial statements (but the other firms report is not presented with the financial
statements), the auditors report on the current-year financial statements should
A.) Refer to any procedures performed by the current auditor to verify the opinion on the prior-
years financial statements.
B.) Not refer to the prior-years financial statements.
C.) Refer to the report and type of opinion issued by the other firm on the prior-years financial
statements.
D.) Disclaim an opinion on the prior-years financial statements.
Solution
The answer is:
C.) Refer to the report and type of opinion issued by the other firm on the prior-years
financial statements.
This is done to maintain continuity from one years report to the next.
