When Reporting on Comparative Financial Statements,auditors Ordinarily Should Modify Their

question 24

Multiple Choice

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

• A) Prior-year 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) The prior-year opinion was unqualified and the opinion on the current-year financial statements is modified due to a lack of consistency.
• D) The prior-year financial statements are restated following an acquisition in the current year.

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Definitions:

Opportunities

Situations or contexts that present potential for growth, improvement, or success.

Idea Generation

The process of creating, developing, and communicating new concepts or solutions, often seen as the first step in the development of new products or services.

Opportunity Identification

The process of recognizing and evaluating new business opportunities in the marketplace.

Effectuating Opportunities

Taking action to transform creative ideas into viable opportunities through experimentation, partnerships, and embracing uncertain outcomes.