Oceanview Marine Company is presenting comparative financial statements for 2018
ID: 2532240 • Letter: O
Question
Oceanview Marine Company is presenting comparative financial statements for 2018, 2017, and 2016. At the conclusion of the audit of the 2018 financial statements, Lilts, Berger and Associates should express: Please add checkmark next to the correct answer(s).
1. unmodified opinions on the 2018, 2017, and 2016 financial statements.
2. only an unmodified opinion on the 2018 financial statements.
3. a qualified opinion on the 2018 financial statements and unmodified opinions on the 2017 and 2016 financial statements.
4. unmodified opinions on the 2018 and 2017 financial statements, and a disclaimer of opinion on the 2016 financial statements.
5. none of the above.
Explanation / Answer
If the auditor’s report on the prior period, as previously issued, included a
qualified opinion, a disclaimer of opinion, or an adverse opinion and the matter
which gave rise to the modification is unresolved, the auditor shall modify the
auditor’s opinion on the current period’s financial statements. In the Basis for
Modification paragraph in the auditor’s report, the auditor shall either:
(a) Refer to both the current period’s figures and the corresponding
figures in the description of the matter giving rise to the modification
when the effects or possible effects of the matter on the current
period’s figures are material; or
(b) In other cases, explain that the audit opinion has been modified
because of the effects or possible effects of the unresolved matter on
the comparability of the current period’s figures and the
corresponding figures
From the above sentences we can conclude that the answer is "4"
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