Comparative Financial Statements Include the Financial Statements of a Prior

question 24

Multiple Choice

Comparative financial statements include the financial statements of a prior period that were examined by a predecessor auditor whose report is not presented. If the predecessor auditor's report was qualified, the successor auditor must

• A) Obtain written approval from the predecessor auditor to include the prior year's financial statements.
• B) Issue a standard comparative audit report indicating the division of responsibility.
• C) Express an opinion on the current year statements alone and make no reference to the prior year statements.
• D) Disclose the reasons for any qualification in the predecessor auditor's opinion.

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Definitions:

Written, Printed Communication

The exchange of information or messages through texts that are inscribed on a physical medium like paper.

Immediate Interaction

Direct and real-time communication or engagement between individuals or entities.

Written Medium

A form of communication that involves the expression of thoughts, ideas, or information through the written word, including books, articles, emails, and social media posts.

Print Channel

A medium through which printed materials are distributed to a target audience.