When Reporting on Comparative Financial Statements Where the Financial Statements

question 36

Multiple Choice

When reporting on comparative financial statements where the financial statements of the prior year have been examined by a predecessor auditor whose report is not presented, the successor auditor should make:

• A)no reference to the predecessor auditor.
• B)reference to the predecessor auditor only if the predecessor auditor expressed a qualified opinion.
• C)reference to the predecessor auditor only if the predecessor auditor expressed an unqualified opinion.
• D)reference to the predecessor auditor in an explanatory paragraph regardless of the type of opinion expressed by the predecessor auditor.

---

Definitions:

New Products

Goods or services that have been recently developed, introduced to the market, or significantly improved to meet consumer needs or open new markets.

Competing Products

Goods or services offered in the market that serve similar needs or desires of consumers, often leading to a choice preference based on price, quality, or other attributes.

Technological Advance

The progress or improvement in technology, leading to more efficient processes, products, or services.

Production Process

is the series of steps or operations involved in the manufacture of goods or services.