[Anonymous]

Is it possible for a company to have two sets of F/Ss, on is issued and the other is unissued?

Thanks

[Anonymous]

I think you mean ‘audited' not ‘issued', right? Or…?

Companies can have internal financial statements, as well as audited financial statements. There's no reason for the internal f/s to be different than the audited f/s, unless the internal f/s are issued for other time periods. For example, if a company wants to issue internal f/s for the prior 2 months or prior 2 weeks, it's ok. It's usually just review what's going on and for budget comparison purposes. Those f/s aren't released to the public.

[Anonymous]

Well, here is why I am raising this question regarding “issued”.

With reporting on comparative F/Ss, before predecessor accountant's review or compilation report being reissued, he or she has to conduct one of the following procedures: comparing the prior period F/Ss with those issued previously and currently. However, I thought the prior period F/Ss is parallel to the ones previously issued; if so, why do we need to make the comparison between themselves. Then, the “issued” vs. “unissued” idea comes to my mind. The prior period statements might be unissued? But it does not make any sense.

[Anonymous]

I see how the wording is confusing, but it's not really an issued vs. unissued matter.

Comparative statements have two years of data listed side-by-side. So, when you are reissuing the f/s and the report, you are essentially reissuing both the current and prior year data. You need to compare the prior period data that you are reissuing with what was on the old reports and make sure everything still looks ok. You need to also do the same with the current year data.

For example, the 2013 F/S will have a 2013 column and a 2012 column. If you need to reissue the 2013 F/S, you will need to double check the info in both columns and make sure they're still accurate. Does that make sense?

[Anonymous]

Not really.

“Comparing the prior period F/Ss with those issued previously and currently.” This is the statement in the book,

So, in your example, in order to reissue review report, as an old accountant, he needs to compare the prior period statements which is the 2012 F/Ss with the one issued previously and currently which are the old comparative F/Ss showing 2012 and 2013 data?

[Anonymous]

It sounds like a complicated way of saying “agree to prior year”.

[Author]

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