Auditor's ReportComparative Information

61. In accordance with PSA 710, comparative information may be

a. Corresponding figures

b. Comparative financial statements

c. Either a or b

d. Neither a nor b

Corresponding Figures

62. They are not presented as complete financial statements capable of standing alone, but are an integral part of the current period.

a. Corresponding figures

b. Comparative financial statements

c. Supplementary report

d. Notes of financial statements

63. When corresponding figures are presented, the auditor's opinion shall not refer to the corresponding figures except

a. If the auditor's report on the prior period included a modified opinion and the matter which gave rise to the modification is unresolved.

b. If a material misstatement exists in the prior year financial statements on which an unmodified opinion has been previously issued.

c. In the case of initial audit such as when the prior year financial statements were unaudited or audited by a predecessor auditor.

d. All of the above.

Comparative Financial Statements

64. A client is presenting comparative (two-year) financial statements. Which of the following is correct concerning reporting responsibilities of a continuing auditor?

a. The auditor should issue one audit report that is on both presented years.

b. The auditor should issue two audit reports, one on each year.

c. The auditor should issue one audit report, but only on the most recent year.

d. The auditor may issue either one audit report on both presented years, or two audit reports, one on each year.

65. An auditor expressed a qualified opinion on the prior year's financial statements because of a lack of adequate disclosure. These financial statements are properly restated in the current year and presented in comparative form with the current year's financial statements. The auditor's updated report on the prior year's financial statements should

a. Be accompanied by the auditor's original report on the prior year's financial statements.

b. Continue to express a qualified opinion on the prior year's financial statements.

c. Make no reference to the type of opinion expressed on the prior year's financial statements.

d. Express an unqualified opinion on the restated financial statements of the prior year.

66. When reporting on prior period financial statements in connection with the current period's audit, if the auditor's opinion on such prior period financial statements differs from the opinion the auditor previously expressed, the auditor shall disclose the substantive reasons for the different opinion in

a. The Key Audit Matter section

b. An Emphasis of Matter paragraph

c. An Other Matter paragraph

d. Any of the above

67. Jewel, CPA, audited Infinite Co.'s prior year financial statements. These statements are presented with those of the current year for comparative purposes without Jewel's auditor's report, which expressed a qualified opinion. In drafting the current year's auditor's report, Crain, CPA, the successor auditor, should do the following in an Other Matter paragraph

I. Not name Jewel as the predecessor auditor.

II. Indicate the type of report issued by Jewel.

III. Indicate the substantive reasons for Jewel's qualification.

IV. The date of the predecessor auditor's report

a. I and II only.

b. II and III only.

c. I and III only

d. I, II, III, and IV.

68. When unaudited financial statements are presented in comparative form with audited financial statements in a document filed with the Securities and Exchange Commission, such statements should be

Marked as "unaudited" State as "unaudited" in an Other Matter paragraph

a. Yes No

b. Yes Yes

c. No Yes

d. No No