Prior years financial statements are restated to

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Unformatted text preview: tion that may result in a disclaimer of opinion. Choice "c" is incorrect. Refusal by the client to permit the auditor to confirm accounts receivable is a scope limitation and may result in a disclaimer of opinion. Choice "d" is incorrect. Refusal of management to sign a management representation letter casts doubt on the audit evidence gathered and automatically constitutes a limit on scope that would likely result in a disclaimer of opinion. 15. CPA-03040 When reporting on comparative financial statements, an auditor ordinarily should change the previously issued opinion on the prior-year's financial statements if the: a. Prior year's financial statements are restated to conform with generally accepted accounting principles. b. Auditor is a predecessor auditor who has been requested by a former client to reissue the previously issued report. c. Prior year's opinion was unqualified and the opinion on the current year's financial statements is modified due to a lack of consistency. d. Prior year's financial statements are restated following a pooling of interests in the current year. CPA-03040 Choice "a" is correct. If, during the current audit, auditors become aware of circumstances or events that affect the financial statements of a prior period, they should cons...
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