The American Institute of CPAs has released a technical practice aid about what auditors should do about asking for a written management representation regarding prior periods that were audited by a previous auditing firm.
The document advises that the auditor is not required to obtain a representation letter covering the prior period financial statements because the auditor is not opining on the prior year when making reference to the prior period that was audited by a predecessor auditor. The technical practice aid also discusses when additional representations may be necessary in the current year’s letter.
For other recent AICPA technical questions and answers,