Before reissuing the prior year's auditor's report on the financial statements of a former client, the predecessor auditor should obtain letters of representation from the:

Question

Quizplus · Accepted Answer

Choice "D" is correct. Before reissuing the prior year's auditor's report on the financial statements of a former client, the auditor should: 1) read the financial statements of the current period; 2) compare the prior-period information that the auditor reported on with the financial statements to be presented for comparative purposes; 3) obtain a letter of representation from the successor auditor; 4) obtain a letter of representation from the former client's management. The representation letter from the successor auditor will state whether the successor's audit revealed any issues of a material nature that might affect the previous financial statements. The representation letter from the former client's management will indicate whether its previous representations are still accurate and whether there have been any subsequent events affecting the previous financial statements. Choices "A", "B", and "C" are incorrect. The predecessor does not request representation letters from the former client's board of directors or attorney.

Before Reissuing the Prior Year's Auditor's Report on the Financial