Choice "a" is correct. Before reissuing the prior year's audit 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, and 3) obtain letters of representation from
management of the former client and from the successor auditor. The representation letter from
management should indicate whether any of management's previous representations should be
modified and whether there have been any subsequent events that would affect the previous
financial statements. The representation letter from the successor auditor should state whether
the successor auditor's audit disclosed any issues of a material nature that might affect the
previous financial statements. Choice "b" is incorrect. The predecessor auditor is seeking
independent confirmation regarding issues that might material y affect the previous financial
statements. A representation letter from the client's audit committee would not provide this
confirmation. Choice "c" is incorrect. The predecessor auditor is seeking independent
confirmation regarding issues that might materially affect the previous financial statements. A
representation letter from the principal underwriter would not provide this confirmation. Choice
"d" is incorrect. The predecessor auditor is seeking independent confirmation regarding issues
that might materially affect the previous financial statements. A representation letter from the
SEC would not provide this confirmation.
QUESTION: 81
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:

A. Former client's management and the board of directors.
B. Former client's attorney and management.
C. Former client's board of directors and the successor auditor.
D. Successor auditor and the former client's management.

Answer(s): D
Explanation:
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, and 4) obtain a letter of representation from the former client's
management. The representation letter from the successor auditor wil 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.
QUESTION: 82
In May X4, an auditor reissues the auditor's report on the X2 financial statements at a
continuing client's request. The X2 financial statements are not restated and the auditor does
not revise the wording of the report. The auditor should:

A. Dual date the reissued report.

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