When reissuing a prior accountant's report, what is required from the predecessor accountant?

When reissuing a prior accountant's report, one of the essential requirements is for the predecessor accountant to read the new financial statements of the company. This is vital as it ensures that the predecessor accountant can properly consider any changes that may have occurred in the financial statements since their original report. Additionally, obtaining a representation letter is crucial because it provides the predecessor accountant with formal written assurance from the management regarding the accuracy and completeness of the financial statements.

This process helps maintain the integrity of the reissued report and ensures that it is still relevant in the context of any updated information. By reviewing the new financial statements, the predecessor accountant assesses whether any significant changes or events need to be disclosed or discussed further. The representation letter adds an additional layer of certainty, confirming that management has provided accurate information to the auditor.

In contrast, other options do not provide the necessary assurance or thoroughness needed when reissuing an audit report. For instance, merely offering a verbal confirmation or reviewing only the current financial statements without a formal representation letter lacks the rigor required in an audit context. An option that suggests issuing a new separate report would not satisfy the intent of reissuing, as it implies a completely fresh audit rather than an acknowledgment and confirmation of a previous report