Flashcards in Reports on Comparative Financial Statements Deck (9)
What statements must be disclaimed if the beginning balances are not ascertainable?
Statements of income, retained earnings, and cash flows
If the auditor becomes aware of evidence that affects the prior statements and the opinion that was expressed, what should the auditor do?
Update the opinion on the current year's report
What paragraph should the auditor use if the updated opinion differs from the previous opinion?
Emphasis-of-matter or other-matter paragraph
What should the paragraphs disclose?
Date of auditors previous report, Previous opinion, Reason for prior opinion, Changes, Statement opinion is different
What should the predecessor auditor do in deciding whether to reissue their report?
Read current statements, Compare statements, Obtain rep letter from successor auditor and management
What date should be used if previous report is unrevised?
Original report date
What date should be used if previous report is revised?
What should the successor auditor do if report of predecessor auditor is not reissued?
Express an opinion on current financials and indicate other-matter paragraph for previous report