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 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 make reference to the predecessor auditor regardless of the type of opinion expressed by the predecessor auditor. This is because the comparative financial statements would not be complete without the information about the prior year's audit, even if the predecessor auditor's report is not presented. The successor auditor should disclose in the current year's report that the prior year's financial statements were audited by a predecessor auditor and describe any circumstances that led to a change in auditors.

When Reporting on Comparative Financial Statements Where the Financial Statements