Reissuing a report

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  • November 23, 2014 at 12:56 am #190299
    Anonymous
    Inactive

    Before reissuing a report which was previously issued on the financial statements of a prior period, a predecessor auditor should

    Review the successor auditor’s working papers.

    Examine significant transactions or events since the date of previous issuance.

    Obtain a signed engagement letter from the client.

    Obtain a letter of representation from the successor auditor.

    D. This answer is correct because the professional standards state that a predecessor auditor should obtain a letter of representation from the successor auditor. The predecessor auditor must also read the current financial statements and compare them to the prior period statements.

    What is the point of reissuing a report? I.e. you issue a report in 2012 for 2011 financial statements. In 2013, someone else audits the 2012 financial statements, why would you need to reissue your report for auditing 2011 financial statements?

Viewing 6 replies - 1 through 6 (of 6 total)
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  • November 23, 2014 at 1:35 am #620607
    MrCPA511
    Participant

    It is for the purpose of comparative financial statements issued by the firm.

    FAR - 86 7/2014
    AUD - 95 10/2014
    REG - 87 1/22/15
    BEC - 84 7/2015

    November 23, 2014 at 1:35 am #621607
    MrCPA511
    Participant

    It is for the purpose of comparative financial statements issued by the firm.

    FAR - 86 7/2014
    AUD - 95 10/2014
    REG - 87 1/22/15
    BEC - 84 7/2015

    November 27, 2014 at 8:53 pm #620608
    mtwst113
    Member

    Mr CPA is right. To expand on this, keep in mind this only happens when a new CPA firm has been hired. I think the fear is that something may have changed in the current year that would have an effect on the prior financial statements, compromising the comparability of the two statements. By getting a letter of representation from the new CPA as well as the company's management, the old CPA can find out if anything needs to be adjusted in the event that they are reissued.

    BEC | √
    AUD| √
    FAR| Spring 2015

    November 27, 2014 at 8:53 pm #621608
    mtwst113
    Member

    Mr CPA is right. To expand on this, keep in mind this only happens when a new CPA firm has been hired. I think the fear is that something may have changed in the current year that would have an effect on the prior financial statements, compromising the comparability of the two statements. By getting a letter of representation from the new CPA as well as the company's management, the old CPA can find out if anything needs to be adjusted in the event that they are reissued.

    BEC | √
    AUD| √
    FAR| Spring 2015

    November 28, 2014 at 12:14 am #620609
    Anonymous
    Inactive

    Thanks guys.

    November 28, 2014 at 12:14 am #621609
    Anonymous
    Inactive

    Thanks guys.

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