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

question 41

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.

---

Definitions:

Arsenal of Democracy

A phrase used by President Franklin D. Roosevelt during World War II, describing the United States' role in supplying Allied nations with military materials.

Adam Smith

Scottish economist known as the father of modern economics, best known for his theory on free markets and the invisible hand guiding economies.

Specialization and Exchange

Economic strategy where individuals, regions, or nations focus on producing goods in which they have a comparative advantage, and then trade with others for what they need.

Trade Barriers

Measures implemented by governments to control or limit the volume of goods and services imported or exported, affecting international trade.