A Predecessor Auditor Should Complete the Following Before Reissuing a Report

question 33

Multiple Choice

A predecessor auditor should complete the following before reissuing a report on statements presented on a comparative basis:

• A) Read the financial statements of the current period.
• B) Read the financial statements of the past five years.
• C) Obtain a letter of representations from the current-year, successor auditor.
• D) Read the financial statements of the current period and obtain a letter of representation from the current-year, successor auditor.

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Definitions:

Dual Processing

a psychological concept that suggests the brain operates using two different systems or processes: one that is fast, automatic, and emotional, and another that is slower, deliberate, and logical.

Appearance-Reality Tasks

Cognitive tasks that assess a child's ability to understand that the appearance of an object can be misleading and different from its reality.

Dual Encoding

The process of representing information in more than one form, typically both visual and verbal, to enhance memory retention.

Fine Motor

Refers to the skills involving the coordination of small muscles in movements, particularly involving the hands and fingers, such as holding a pencil or tying shoelaces.