When Reporting on Comparative Financial Statements, Auditors Ordinarily Should Modify

question 54

Multiple Choice

When reporting on comparative financial statements, auditors ordinarily should modify their previously expressed opinion on the prior years' financial statements if the

• A)prior years' financial statements are restated to conform with generally accepted accounting principles.
• B)auditors were predecessor auditors who have been requested by a former client to reissue the previous report.
• C)prior years' opinions were unqualified and the opinion on the current year's financial statements is modified due to a lack of consistency.
• D)prior years' financial statements are restated following an acquisition in the current year.

Comprehend the role and impact of negotiable and non-negotiable documents of title in goods transactions.

Identify conditions under which a title is considered void, voidable, or good.

Analyze the effects of ship-related risks on goods and the responsibilities of contracting parties.

Understand how title and risk of loss are transferred in various sales scenarios.

---

Definitions:

Commercial Purposes

Activities undertaken with the intention of generating profit or revenue, as opposed to personal or non-commercial use.

Undue Advantage

Gaining benefits or advantages in an unfair or unethical manner, often at the expense of others.

Recover

The act of obtaining a return of something or compensation for loss or damage.

Easement by Prior Use

A right that is automatically granted for the continued use of a portion of property because it was visibly and continuously used prior to the division of the property.