Which of the following best describes the auditors' responsibility when financial statements are presented in comparative format?
A)The auditors' report must only refer to the current year's financial statements.
B)The auditors' report must only refer to the prior years' financial statements if they were audited by the current auditor.
C)The auditors' report must only refer to the prior years' financial statements if they were audited by either the current auditors or predecessor auditors.
D)The auditors' report must refer to all financial statements presented in comparative form, regardless of whether they have been audited by the current auditors or predecessor auditors.

Question

Quizplus · Accepted Answer

The auditors' responsibility when financial statements are presented in comparative format is to refer to all financial statements presented, regardless of whether they were audited by the current auditors or predecessor auditors. This is because the comparability of the financial statements is an important aspect of financial reporting, and users of the financial statements rely on the auditors to provide assurance on the entire set of financial statements presented.

Which of the Following Best Describes the Auditors' Responsibility When