A1 - Reports on Comparative Financial Statements

Question 1

When the financial statements of a prior auditor in a prior period are presented, from whom should the predecessor auditor obtain a letter of representation?

Answer 1

The successor auditor

Question 2

If the comparative financial statements include the financial statements of the prior year that were audited by a predecessor auditor whose report is not presented and the predecessor’s report was qualified, how should the successor disclose this?

Answer 2

Indicate the substantive reasons for the qualification in the predecessor auditor’s opinion (in an other-matter paragraph)