[forgetlogic]

Does the predecessor Auditor need a rep. letter from the successor Auditor AND management, or only the successor auditor when he presents previous yrs report in comparison??

[Anonymous]

Forgetlogic,

When the successor auditor decides to present comparative financial statement then he/she should ask the predecessor auditor to reissue the last year financials. Predecessor would do so after getting a rep letter from the management and the successor. Successor auditor just needs a rep letter from management in relation to the audit. Suppose, lets say becker hired me to audit there books for this year. You had audited their books last year.

Becker wants to present the financial information for this year in comparative format. Then I may ask you to reissue the reports that you prepared last year.

1. In exchange you may ask me to give you a rep letter to make sure that everything is fine and there are no material misstatements.

2. You also wanna letter from management to make sure that they do not know have anything in particular to disclose.

For me, as a current auditor of becker, I definately need a rep letter from peter olinto in connection to audit for this year.

[forgetlogic]

Thats what i thought, Thanks Cpaguru!

I don't why somewhere in one of the Wiley questions in their testbank it said the predecessor auditor only needs the successor Auditor rep. letter and not from management.

[Anonymous]

Hey.. I noticed in becker when asked this question, the answer was

“needs letter from successor auditor.” Not impling ONLY the successor auditor..

I always knew the answer was successor auditor and management, but that wasn't one of the answers to choose from.

AUD is very word tricky..

Gotta pick the best answer 🙂 Good Luck.

[Author]

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