When Reporting on Comparative Financial Statements, Auditors Ordinarily Should Modify

question 5

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 unmodified 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.

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Definitions:

Trademarks

Symbols, words, or phrases legally registered or established by use as representing a company or product.

Trademark Infringement

The unauthorized use of a trademark or service mark (or a substantially similar mark) on competing or related goods and services, leading to confusion among consumers.

Intentionally

The action of doing something deliberately or with specific purpose, often used in legal contexts to determine the level of culpability or responsibility.

Descriptive Term

A word or phrase that describes the characteristics, qualities, or functions of a product, service, or concept.