Jewel, CPA, audited Infinite Co.’s prior-year financial statements. These statements are presented with those of the current year for comparative purposes without Jewel’s auditor’s report, which expressed a qualified opinion. In drafting the current year’s auditor’s report, the current auditor should
Not name Jewel as the predecessor auditor
Indicate the type of opinion expressed by Jewel
Indicate the reasons for Jewel’s qualification
The auditor should state in an other-matter paragraph (following the opinion paragraph and any emphasis-of-matter paragraph) (1) that the prior year’s financial statements were audited by another auditor, (2) the date of the report, (3) the type of opinion expressed and the reasons for any modification, and (4) the nature of any emphasis-of-matter or other-matter paragraph. Furthermore, the predecessor auditor is not named.