When reporting on comparative financial statements where the financial statements of the prior year have been examined by a predecessor auditor whose report is not presented, the successor auditor should make
A) No reference to the predecessor auditor.
B) Reference to the predecessor auditor only if the predecessor auditor expressed a qualified opinion.
C) Reference to the predecessor auditor only if the predecessor auditor expressed an unqualified/unmodified opinion.
D) Reference to the predecessor auditor regardless of the type of opinion expressed by the predecessor auditor.

Question

Quizplus · Accepted Answer

The successor auditor should always make a reference to the predecessor auditor regardless of the type of opinion expressed by the predecessor auditor, as this information is important to the users of the financial statements to understand the continuity of the audit process and any issues raised by the previous auditor.

When Reporting on Comparative Financial Statements Where the Financial Statements