A2 - Other Reports - Comparative Financials

Question 1

Compiled financial statements that omit substantially all the disclosures required by GAAP are:

Answer 1

Not comparable to financial statements that do include required GAAP disclosures.

Question 2

Before reissuing a compilation report on the financial statements of a nonissuer for the prior year, the predecessor accountant is required to:

Answer 2

Compare the prior year’s financial statements with those of the current year.