Publicly listed organizations and those using IFRS (International Financial Reporting Standards)must have audit reports that use the comparative financial statements approach.This means that the auditor reports on
A)the current year's financial statements.
B)both periods under audit,the current and prior year.
C)three years,the current and prior year,and the effects of the prior year.
D)only the ending balances of the general ledger accounts.

Question

Quizplus · Accepted Answer

Publicly listed organizations and those using IFRS must have audit reports that use the comparative financial statements approach, meaning that the auditor reports on both periods under audit, the current and prior year. This allows for better analysis and understanding of the organization's financial performance and position over time. Option A is incorrect because it would only report on the current year's financial statements. Option C is incorrect because it includes the effects of the prior year, which is not required in a comparative financial statements approach. Option D is incorrect because it only reports on the ending balances of the general ledger accounts, which is not sufficient for a comprehensive audit report.

Publicly Listed Organizations and Those Using IFRS (International Financial Reporting