Final answer:
CPAs can express differing opinions on comparative financial statements of successive years depending on the circumstances and the materiality of the issues involved, such as an error in the prior year's statements or a significant change in accounting principles.
Step-by-step explanation:
If a student asks whether Certified Public Accountants (CPAs) can express differing opinions on the sets of comparative financial statements of two successive years, the correct answer would be: d) It depends on the circumstances and materiality of the issues.
A CPA may express different opinions for each year if there are changes or discoveries that materially affect the financial statements' accuracy.
For instance, if an error is discovered in the prior year's financial statements or there is a change in accounting principles that significantly impacts the comparability of the two years' financial statements, differing opinions can be justified. Each opinion should be based on the data and circumstances relevant to each year's financial statements.
However, CPAs aim for consistency, and differing opinions could confuse users of the financial statements. Therefore, such a situation would prompt the CPA to thoroughly justify the reasons for differing opinions in their audit report, providing clarity and transparency for the users of the financial statements.
Therefore, the correct answer is d) It depends on the circumstances and materiality of the issues.