Which of the Following Best Describes the Auditors' Responsibility When

question 154

Multiple Choice

Which of the following best describes the auditors' responsibility when financial statements are presented in comparative format?

• A)The auditors' report must only refer to the current year's financial statements.
• B)The auditors' report must only refer to the prior years' financial statements if they were audited by the current auditor.
• C)The auditors' report must only refer to the prior years' financial statements if they were audited by either the current auditors or predecessor auditors.
• D)The auditors' report must refer to all financial statements presented in comparative form, regardless of whether they have been audited by the current auditors or predecessor auditors.

---

Definitions:

Superordinate Goals

Goals that are shared and require cooperative efforts from individuals or groups that might otherwise have individual or conflicting objectives.

Compromise

An agreement or a settlement of a dispute that is reached by each side making concessions.

Negotiating

The process of discussing and reaching a mutual agreement between parties with differing needs or opinions.

Added Value Negotiating

A negotiation technique that focuses on creating additional value that can be shared between the parties, rather than merely splitting existing value.