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When financial statements are presented in comparative form and another firm audited the prior-
years financial statements (but the other firms report is not presented with the financial
statements), the auditors report on the current-year financial statements should
A.) Refer to any procedures performed by the current auditor to verify the opinion on the prior-
years financial statements.
B.) Not refer to the prior-years financial statements.
C.) Refer to the report and type of opinion issued by the other firm on the prior-years financial
statements.
D.) Disclaim an opinion on the prior-years financial statements.
Solution
The answer is:
C.) Refer to the report and type of opinion issued by the other firm on the prior-years
financial statements.
This is done to maintain continuity from one years report to the next.

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  • 1. When financial statements are presented in comparative form and another firm audited the prior- years financial statements (but the other firms report is not presented with the financial statements), the auditors report on the current-year financial statements should A.) Refer to any procedures performed by the current auditor to verify the opinion on the prior- years financial statements. B.) Not refer to the prior-years financial statements. C.) Refer to the report and type of opinion issued by the other firm on the prior-years financial statements. D.) Disclaim an opinion on the prior-years financial statements. Solution The answer is: C.) Refer to the report and type of opinion issued by the other firm on the prior-years financial statements. This is done to maintain continuity from one years report to the next.