Comparative F/S SIM Flashcards
In the event that accountants have compiled or reviewed the prior period statements but prepared the current period statements, the accountant must re-issue the report for the prior period
False
In a report on comparative financials statements, when a continuing accountant reviews financial statements for the current period after compiling the prior period statements, the report on the prior period should be issued as the last paragraph of the current period review report
True
In the event that accountants have reviewed the prior period statements but compiled the current period statements, the accountant is allowed to issue a compilation report and add a paragraph to current period report. The added paragraph should describe the responsibility assumed for the prior statements.
True
In this case, accountant is allowed to issue a compilation report and add a paragraph to the current period report. The added paragraph should describe the responsibility assumed for the prior statement.
In the event that accountants have reviewed the prior period statements but compiled the current period statements that accountant is allowed to issue a compilation report and add a paragraph to current year report. This description should include the date of the original report
True
In the event that accountants have reviewed the prior period statements but compiled the current period statements, reissuing the review report of the prior period would NOT be appropriate.
False
In the event that accountants have reviewed the prior period statements but compiled the current period statements, the accountant may reissue the prior period report combined with the current year compilation report or presented separately from the current period compilation report (Other Matter Paragraph).
In the event that accountants have reviewed the prior period statements but compiled the current period statements, if the accountant re-issue the prior period review report combined with the current year compilation report, the combined report should state that no review procedures have been performed in connection with the review engagement after the date of review report.
True
An accountant should NOT issue a report on comparative financial statements for one or more, but not all the periods presented, omit substantially all the disclosures required by GAAP.
True
Comparative financial statements that omit substantially all of the disclosures required by GAAP are not comparable to financial statements that include such disclosures.
During the current engagement to report on comparative financial statements, if a continuing accountant discovers that the client revises the prior year financial staetments to conform with GAAP, the accountants previously issued modification made to disclose the departure from GAAP may no longer be necessary in the prior year report.
True
During the current engagement, if an accountant becomes aware of information that would have affected the report on prior period, a previous modification made to disclose a departure from GAAP may no longer be necessary and as a result an “other matters paragraph” should be added to the prior report (from bad news to good news use the other matters paragraph.)
During the current engagement to report on comparative financial statements, if a continuing accountant discovers that the client revises the prior year financial statements confirm with GAAP, a continuing accountant should add “an other matters Paragraph” to a reissued report on the prior period.
True
During the current engagement to report on comparative financial statements, if a continuing accountant discovers that the client revises the prior year financial statements to conform with GAAP, the continuing accountant should add an “other matters paragraph” to reissue report on the prior period.
During the current engagement to report on comparative financial statements, if a continuing accountant discovers that the client revises the prior year financial statements to conform with GAAP, the “other matters paragraph” added to the reissued prior year report should contain the date, but should not contain any statement suggesting that the financial statements of the prior. Have been changed to comply with GAAP.
False
In an engagement to report on comparative financial statements an “other matter paragraph” added to the reissued report on the prior period should contain the date of the original report, that the statements of the prior period have been changed (if needed they have been changed) and the reason why the accountant is changing report.
In an engagement to report on comparative financial statements, if in the current period a continuing accountant discovers a departure from GAAP that affects a report of prior period an accountant may use an “other matters paragraph” to disclose the departure from GAAP when reissuing the prior period report.
True
If during the current year the continuing accountant becomes aware of information that effects the accountants report on the prior period and the new information causes the accountant to change a report on the prior period, an other matters paragraph is added to the reissued prior period report along with the current Period report.
In an engagement to report on competitive financial statements, an other matters paragraph added to reissued report on the prior. Should contain the date of the original report but not the reason for the change to the original report.
False
In an engagement to report on comparative financial statements, an other measures paragraph added to a reissued report on the prior period should contain the date of the original report AND the reason for the change in the original report.
A successor CPA is engaged to report on comparative financial statements that were reviewed by a predecessor. The predecessor CPA is required to reissue their report on the prior period
False
Predecessor accountants are not required to re issue the report on prior periods.
I successor CPA is engaged to report on competitive financial statements that were reviewed by a predecessor. If the predecessor accountant decides to re issue the report, the predecessor should read the financial statements of the prior periods to determine if their prior period report is still appropriate.
True
If a successor CPA is engaged to report on comparative financial statements that were reviewed by a predecessor, and the predecessor accountant decides to reissue their report they should read the financial statements of prior period to determine if their prior period report is still a appropriate. For example, the current presentation of last year’s financial statement maybe different than the presentation of the financial statement that they reported on. The predecessor would only know that the current presentation of the prior year statements are the same and have not been changed if they read the current presentation of the prior year financial statements and compare them last year’s presentation.
A successor CPA is engaged to report on comparative financial statement that were reviewed by a predecessor. If the predecessor accountant decides to reissue their report, the predecessor should read the financial statements of the prior period but would not need to read the financial statements of the current period.
False
If the predecessor accountant decides to reissue the report, the predecessor should read the financial statements of the current period to see if anything in the current period statements could indicate an error in the previous statements then the predecessor should read the financial statements of the prior period and compare the prior period statements to those he should previously and currently to make sure no prior period figures have been changed.
A successor CPA is engaged to report on comparative financial statements that were reviewed by predecessor. If the predecessor accountant decides to reissue the report, the predecessor should read the financial statements of prior period, read the financial statements of current period, but would not need to read the current period to report.
False
A successor CPA is engaged before dawn competitive financial statements that were reviewed by a predecessor and the predecessor accountant decide to re issue the report the predecessor should read the Financial statements of prior periods, read the financial statements of current period, and read the current period review report .
a successor CPA is engaged to report on comparative financial statements that were reviewed by a predecessor. If the predecessor accountant decides to reissue the report, the predecessor should provide a letter to the successor CPA stating that they are not aware of any relevant information that might have a material effect on the current period statements.
False
Successor CPA is engaged to report on comparative financial statements that were reviewed by a predecessor. If the predecessor accountant decides to reissue the report, the successor should provide a letter to the predecessor stating that they are not aware of any relevant information that might have a material effect on prior period statements.
A successor CPA is engaged to report on comparative financial statement that were reviewed by a predecessor. If a predecessor is asked to reissue their prior report, the predecessor should generally read the new financial statements, read the current year report and obtain a representation letter from the successor CPA but the representation letter would not be required if the prior year engagement was compilation.
False
Whenever predecessor accountant RR to reissue their prior period report (audit, review or compilation) they should read the new financial statements and obtain a representation letter from the successor CPA.
Successor CPA is engaged to report on a review of comparative statements that were reviewed by a predecessor. In the event that the predecessor report is NOT reissued, the successor account should NOT make reference to the report of the predecessor accountant in the current review report.
False
If a successor CPA is engaged to report on a review of comparative financial statements that were reviewed by a predecessor and the predecessor accountant report is not reissued, the successor accountant should either make reference to the report of the predecessor accountant in the current review report that level of service themselves which would mean taking responsibility for the prior year. More likely 99 times out of 100 the successor should simply make reference to the report of predecessor accountant in the current review report.
A successor CPA is engaged to report on a review of comparative financial statements that were reviewed by a predecessor. In the event that the predecessor accountant report is NOT reissued and the successor accountant wishes to refer to the predecessor’s report in the current period review report, the successor will expand the current year period review report to include an additional paragraph that states that the prior year financial statements were reviewed nut would NOT generally name the predecessor who performed the work.
True - A successor CPA is engaged to report on a review of comparative financial statement that were reviewed by a predecessor. In the event that the predecessor accountant report is not reissued and the successor accountant wishes to refer to the predecessors report in the current period review report, the successor will expand the current period review report to include an additional paragraph that states that the prior year financial statements were reviewed by OTHER ACCOUNTANTS.
Successor would not generally name the predecessor unless the predecessor and successor’s practice are combined.
A successor CPA is engaged to report on a review of comparative financial statements that were reviewed by a predecessor. In the event that the predecessor accountant report is N NOT reissued and the successor accountant wishes to refer to the predecessors report in the current period review report, the successor will expand the current period review report to include an additional paragraph that states that the prior year financial statements were reviewed by other accountants and will include the date of the report.
True
A successor CPA is engaged to report on a review of comparative financial statements that were reviewed by a predecessor. In the event that the predecessor accountant report is N NOT reissued and the successor accountant wishes to refer to the predecessors report in the current period review report, the successor will expand the current period review report to include an additional paragraph that states that the prior year financial statements were reviewed by other accountants and will include the date of the report but would NOT include a description of the type of assurance given in the prior review report.
False - A successor CPA is engaged to report on a review of comparative financial statements that were reviewed by a predecessor. In the event that the predecessor accountant report is NOT reissued and the successor accountant wishes to refer to the predecessors report in the current period review report, the successor will expand the current period review report to include an additional paragraph that states that (1) the prior year financial statements were reviewed by other accountants and (2) will include the date of the report AND (3) would include a description of the type of assurance given in the prior review report, LIMITED ASSURANCE FOR A REVIEW, (4) a description of any modification given in the prior period’s report.
NOTE: If the prior period was a compilation, the extra paragraph in the current period report would include a description of the type of assurance (disclaimer) if there was a compilation performed by the predecessor in the prior period.
Unaudited financial statements (compilation or reviewed) should not be presented in comparative form with audited financial statements.
False
when audited financial statements (compilation or reviewed) are presented in comparative form with audited financial statement, the audited should be clearly marked (unaudited).
When unaudited financial statements are presented for the current year in comparative form with audited financial statements of the prior year , the unaudited financial statements should be clearly marked but the CPA may NOT reissue the prior year audit report.
False
When unaudited financial statements are represented in comparative form with unaudited financial statements com the unaudited financial statements should be clearly marked and CPU should EITHER reissue the prior period audit report OR include an other matters paragraph in the current period report describing the responsibility assumed for prior period statements.
