If the predecessor auditors do not reissue their audit report on comparative financial statements,the successor auditors should:
A)Express a qualified opinion on the comparative financial statements audited by the predecessor auditors.
B)Reproduce the predecessor auditors' report and include it with the new set of financial statements.
C)Have the client omit the comparative financial statements.
D)Refer to the report of the predecessor auditors.

Question

Quizplus · Accepted Answer

If the predecessor auditors do not reissue their audit report on comparative financial statements, the successor auditors should refer to the report of the predecessor auditors in their own report. This reference should be made to indicate the nature of the reference and should identify the location of the comparative financial statements in the prior year's report. The successor auditors should also consider the adequacy of disclosures in the notes to the financial statements related to the change in auditors. However, they do not need to express a qualified opinion, reproduce the predecessor auditors' report, or have the client omit the comparative financial statements.

If the Predecessor Auditors Do Not Reissue Their Audit Report