New Technical Questions and Answers (TPAs) have been issued and are available on the AICPA website to provide nonauthoritative guidance.
TPAs 6931.18–.30 address the effect of FASB Accounting Standards Update No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting, on the accounting for primarily single-employer, defined benefit pension and defined contribution retirement plans. The guidance was developed by the AICPA Employee Benefit Plans Expert Panel, and readers are encouraged to review these TPAs as a collective set of guidance.
TPA 8900.11, “Management Representations Regarding Prior Periods Presented That Were Audited by Predecessor Auditor,” addresses situations when the prior-period statements were audited by a predecessor auditor whose report on the prior period’s financial statements is not reissued.
Under these circumstances, 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 TPA also discusses when additional representations may be
necessary in the current year’s letter.
