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 introductory paragraph, Auditor's Responsibility section, and opinion paragraph.
C) reference the predecessor auditors' report in an other-matter paragraph.
D) disclaim an opinion on the prior-years' financial statements.

Question

Quizplus · Accepted Answer

The current auditor should include an other-matter paragraph to reference the predecessor auditor's report when prior-year financial statements are presented in comparative format.

When a Predecessor Auditor Has Examined the Prior-Years' Financial Statements