When the audited financial statements of the prior year are presented together with those of the current year, the continuing auditor's report should cover:
A)both years.
B)only the current year.
C)only the current year, but the prior year's report should be presented.
D)only the current year, but the prior year's report should be referred to.

Question

Quizplus · Accepted Answer

When the audited financial statements of the prior year are presented together with those of the current year, the continuing auditor's responsibility extends to both sets of financial statements, hence the auditor's report should cover both years. This ensures that users of the financial statements receive a comprehensive view of the financial performance and position over the two-year period, with the auditor's opinion applying to both.

When the Audited Financial Statements of the Prior Year Are