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.

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Definitions:

Start

The beginning or initiation of an action, process, or operation.

General Partnership

A business structure where two or more individuals share ownership, profits, and responsibilities.

Liability

The state of being legally responsible for something, typically involving financial compensation for harm or damages.

Souvenir Shop

A retail establishment specializing in the sale of goods and memorabilia indicative of a particular location or event, aimed primarily at tourists.