ABC Company prepares financial statements showing the last two years,years X and Y (Year X is the year prior to year Y).The auditor performed an audit of year X and a review of year Y.The auditor may
A) Report on the year Y review and reissue the year X audit report.
B) Provide only the report concerning the year Y review.
C) Reissue the year X audit report with an explanatory paragraph disclosing that only a review was performed on year Y.
D) Notify the client that prior-year audited financial statements cannot be presented when the current-year statements have not been audited.

Question

Quizplus · Accepted Answer

The auditor can report on the year Y review and reissue the year X audit report, as long as it is clearly stated that the current year was only reviewed and not audited.

ABC Company Prepares Financial Statements Showing the Last Two Years,years