An Entity's Comparative Financial Statements Include the Financial Statements of the Prior

question 54

Multiple Choice

An entity's comparative financial statements include the financial statements of the prior year that were audited by a predecessor auditor whose report is not presented.If the predecessor's report was qualified,the successor should

• A)Issue an updated comparative report indicating the involvement of component auditors.
• B)Explain to the client that comparative financial statements may not be presented under these circumstances.
• C)Express an opinion only on the current year's financial statements and make no reference to the prior years' statements.
• D)Indicate the substantive reasons for the qualification in the predecessor auditors' opinion.

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Definitions:

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The characteristic of a document, contract, or agreement that makes it legally enforceable by being properly executed according to the law.

Final Rule

The last version of a rule or regulation issued by a government agency after consideration of public comments and review.

Administrative Process

The procedures and operations involved in running an organization, government, or institution, including tasks such as filing, record-keeping, and policy implementation.

Administrative Agencies

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