Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

When an auditor gathers sufficient evidence about consistency in a first audit of a new client, referring to the consistency in the auditor's report is a crucial step in communicating the findings and the reliability of the financial statements. This is because consistency relates to the application of accounting principles over time, and in the case of a first audit, it provides assurance to users of the financial statements that the company has applied those principles without significant change that could affect comparability. Referring specifically to the auditor's report serves to highlight that there was a review of the client's accounting practices with regard to consistency, and it assures users that the financial statements are prepared in accordance with the applicable financial reporting framework. Thus, it emphasizes the auditor's due diligence in assessing the client's adherence to accounting standards. Including this reference helps users of the financial statements understand that changes in accounting policies or estimates are appropriately noted and justified if they occurred, thus enhancing transparency and trust in the reported results. By contrast, the other options do not adequately communicate the auditor’s findings or fail to address the important aspect of consistency in financial reporting. For example, stating that accounting principles have been applied consistently without reference to the auditor’s opinion could lead to misunderstanding about whether the auditor has undertaken sufficient reviews. Not reporting on