An audit report may need to be reissued if:
A) the auditor is replaced and the subsequent auditor refuses to rely on the predecessor auditor's work.
B) the predecessor auditor relies wholly on the work of the successor auditor.
C) the successor auditor requests that the predecessor auditor issue an audit report on the previous year's financial statements, presented for comparative purposes.
D) depending on the circumstances, the auditor may choose any of the above.

Question

Quizplus · Accepted Answer

The correct answer is C because when financial statements are presented comparatively with those of the previous year, and the successor auditor is issuing the current year's audit report, they may request the predecessor auditor to reissue their report on the previous year's financial statements to accompany the current year's report. This ensures that users of the financial statements have access to audited comparative information. Options A and B describe situations related to the reliance on work between predecessor and successor auditors but do not typically require the reissuance of an audit report by the predecessor auditor.

An Audit Report May Need to Be Reissued If