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.