Choice "B" is correct. When a successor auditor does not present the predecessor auditor's report, the successor should indicate in an other-matter paragraph that the predecessor auditor expressed an unmodified opinion on the prior year's financial statements.
Choice "a" is incorrect. No assurance is provided regarding the fair presentation of the prior year's financial statements.
Choice "d" is incorrect. The auditor does make reference to the prior year's financial statements, indicating in an other-matter paragraph that the predecessor auditor expressed an unmodified opinion on the prior year's financial statements.Choice "c" is incorrect. There is no requirement that the successor obtain a letter of representation from the predecessor auditor, although the reverse may be true (the predecessor should obtain a letter of representation from the successor if the previous report is to be reissued).
