when reporting on comparative financial statements an auditor ordinarily should chan 602339

When reporting on comparative financial statements, an auditor ordinarily should change the previously issued opinion on the prior year’s financial statements if the

1. Prior year’s financial statements are restated to conform with generally accepted accounting principles.
2. Auditor is a predecessor auditor who has been requested by a former client to reissue the previously issued report.
3. Prior year’s opinion was unqualified and the opinion on the current year’s financial statements is modified due to a lack of consistency.
4. Prior year’s financial statements are restated following a pooling of interests in the current year.