When a Predecessor Auditor Has Examined the Prior Years' Financial

question 55

Multiple Choice

When a predecessor auditor has examined the prior years' financial statements presented in comparative format,the current auditors' report should

• A)Make no reference to the predecessor auditors' report.
• B)Reference the predecessor auditors' report in the introductory paragraph,Auditor's Responsibility section,and opinion paragraph.
• C)Reference the predecessor auditors' report in an other-matter paragraph.
• D)Disclaim an opinion on the prior years' financial statements.

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Definitions:

Sorokin

Pitirim Sorokin was a Russian-American sociologist known for his contributions to social cycles theory and for founding the sociology department at Harvard University.

Cyclical Theory

A theory that suggests historical events and stages of society repeat themselves in cycles due to underlying patterns or forces.

Social System

A social system is an interdependent set of cultural and structural elements that interact and influence human behaviour and relationships in a society.

Social Problem

Issues within society that are recognized by a significant number of people as being undesirable or needing improvement.