Chapter 2 Section 3: Reporting on Comparative Financial Statements

Question 1

What do you do if there is a service upgrade between two periods?

Answer 1

Issue as the last paragraph of this year, an update of the prior year’s report

Question 2

What do you do if there is a service downgrade between two periods?

Answer 2

Issue a comp report and add a paragraph to the current period statements or reissue the prior period review report

Question 3

What do you do if other accountants were involved in prior periods and their report is being reissued unchanged?

Answer 3

The old accountant should read this year’s stuff, compare the prior financials with this year’s, and obtain a letter from the next accountant stating that they don’t know of anything that could impact the prior year statements.

Question 4

What do you do if other accountants were involved in prior periods and their report is not being reissued?

Answer 4

The new accountant should reference the report in this year or perform that level of service themselves

Question 5

What do you do if comparative financials are released and one is audited and the other is not?

Answer 5

Make sure it’s clear that one is not, or reissue the prior one to match this year’s