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 Opinion on the Financial Statements section and Basis for Opinion section.
C)reference the predecessor auditors' report in an explanatory paragraph.
D)disclaim an opinion on the prior years' financial statements.

Question

Quizplus · Accepted Answer

The current auditor should include an explanatory paragraph referencing the predecessor auditor's report when prior years' financial statements are presented in comparative format.

When a Predecessor Auditor Has Examined the Prior Years' Financial