When updating the report on prior years' financial statements presented in comparative form,the auditors' responsibility for the prior years' financial statements is
A)Limited to the previously issued report date.
B)Extended to the date of the updated audit report.
C)Limited to 30 days after the date of the prior years' financial statements.
D)Extended to the updated report date only if information comes to the auditors' attention requiring modification of the previously expressed opinion.

Question

Quizplus · Accepted Answer

The auditors' responsibility for prior years' financial statements is extended to the date of the updated audit report when they update their report on those statements. This means they must consider any new information that may affect their opinion on the prior years' financial statements up to the date of the updated report.

When Updating the Report on Prior Years' Financial Statements Presented