Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

Which task is NOT a responsibility of a predecessor auditor before reissuing a prior year's report?

1. Compare current and prior year's comparative financial statements.

2. Obtain the current comparative financial statements.

3. Review the audit documentation of the successor auditor.

4. Obtain a letter of representation from the successor auditor.

The correct answer is: Review the audit documentation of the successor auditor.

In the context of reissuing a prior year's audit report, the responsibilities of a predecessor auditor include necessary evaluations to ensure the integrity and relevance of the financial statements presented. One of the key tasks involves obtaining the current comparative financial statements, as this allows the predecessor auditor to assess whether any significant changes have occurred that could affect their prior conclusion. Comparing the current and prior year’s financial statements is also essential because it helps to identify any discrepancies or issues that may have arisen since the initial audit. Similarly, obtaining a letter of representation is crucial, as it provides confirmation from management regarding the accuracy and completeness of the financial statements and any subsequent events that could impact them. The responsibility that does not fall under the predecessor auditor's tasks is reviewing the audit documentation of the successor auditor. The predecessor auditor is not involved in the successor auditor's documentation or their findings. Their primary focus is on ensuring that the conditions under which they originally issued their report still hold true, rather than delving into the successor's audit work or practices. Therefore, this task represents a boundary of responsibility that the predecessor auditor does not cross.