What are the responsibilities of the successor and predecessor auditor when a company is changing auditors?

The successor auditor should contact the predecessor auditor prior to final acceptance of the engagement. The successor auditor normally reviews the predecessor's audit documentation relating to planning, internal control, audit results, balance sheet accounts, and contingencies. Thus, this is the correct answer.

The successor auditor has no responsibility to contact the predecessor auditor.

i) Information about integrity of management. ii) Disagreement with management concerning auditing procedures. iii) Review of internal control system.

What is the responsibility of a successor auditor with respect to communicating with the predecessor auditor in connection with a prospective new audit client? The successor auditor should obtain permission from the prospective client to contact the predecessor auditor. Engagements are adequately supervised.

9. The successor auditor should request the client to authorize the predecessor to allow a review of the predecessor's working papers.

Which of the following statements is true regarding an auditor's communications with a predecessor auditor prior to engagement acceptance? Inquiries addressing specific matters are required; or example, the predecessor's understanding for the reasons for the change in auditors.

The predecessor auditor should ordinarily permit the successor auditor to review working papers, including documentation of planning, internal control, audit results, and other matters of continuing accounting and auditing significance, such as the working paper analysis of balance sheet accounts, and those relating to ...

The purpose of the communication is to help the successor auditor evaluate whether to accept the engagement. While the burden of initiating the communication rests on the successor auditor, the predecessor auditor must respond to the request for information.

Discuss the factors an auditor should consider before accepting a company as an audit client. Answer: The auditor should investigate and consider the prospective client's standing in the business community, financial stability, management's integrity, and relations with its bankers, attorneys, and previous CPA firm.

Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client's management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or ...

They should include the following:The objective and scope of the audit;The responsibilities of the auditor;The responsibilities of management;The identification of an applicable financial reporting framework; and.Reference to the expected form and content of any reports to be issued.Mar 10, 2012

PROCEDURE UNDERTAKEN BY AN AUDITOR BEFORE ACCEPTING NOMINATIONEnsure he is professionally, legally and ethically qualified to act as an auditor. ... Establish whether the firm's resources are adequate to service the needs of the new client i.e. staff time with the necessary technical competence.

Before the audit begins, the auditor performs pre-engagement acceptance or continuance procedures....This includes:an independence assessment;a pre-engagement assessment; and.communications with the previous auditor (if applicable).

EVALUATION OF PROSPECTIVE AUDITING CLIENTS Client acceptance evaluation should include General Considerations, Management Integrity, Management Commitment to GAAP, Management Internal Control Consciousness, Financial Strength of the Client, and Other Risk Factors.

Audit ProcessStep 1: Planning. The auditor will review prior audits in your area and professional literature. ... Step 2: Notification. ... Step 3: Opening Meeting. ... Step 4: Fieldwork. ... Step 5: Report Drafting. ... Step 6: Management Response. ... Step 7: Closing Meeting. ... Step 8: Final Audit Report Distribution.

The auditor should undertake the following activities before starting an initial audit: Perform procedures regarding the acceptance of the client relationship and the specific audit engagement; and.

The auditor should also consider wider economic factors such as the level and volatility of interest rates and exchange rates and their potential impact on the client. The importance of these issues is their potential impact on the financial statements and on the planning of the audit.

In such cases, the successor auditor may consider the knowledge obtained from his or her review of the predecessor auditor's working papers and inquiries of the pre- decessor auditor to determine the nature, timing, and extent of procedures to be applied in the circumstances.

The successor auditor has no responsibility to contact the predecessor auditor.

Terms in this set (6) what are the responsibilities of the successor and predecessor auditors when a company is changing auditors? the new auditor who is the successor is required to initiate communication with the predecessor auditor in order to help determine whether to accept the engagement.

Which of the following would a successor auditor ask the predecessor auditor to provide after accepting an audit engagement? Matters that may facilitate the evaluation of financial reporting consistency between the current and prior years.

The successor auditor has the responsibility to initiate contact with the predecessor auditor to ask about the client before the engagement is accepted; the predecessor has no responsibility to initiate this contact, even when aware of matters bearing on the integrity of management.

The successor auditor should communicate to the predecessor auditor any information that the predecessor auditor may need to consider in accordance with section 561, Subsequent Discovery of Facts Existing at the Date of the Auditor's Report, which sets out the procedures that an auditor should follow when the auditor ...

When audits have been previously conducted by a predecessor auditor, the successor auditor (current year auditor) should make inquiries to the predecessor auditor after client has given permission to do so. Inquiries that should be asked by the …

.08 The successor auditor should request permission from the prospective client to make an inquiry of the predecessor auditor prior to ﬁnal acceptance of the engagement. Except as permitted by the Rules of the Code of Professional Conduct, an auditor is precluded from disclosing conﬁdential information ob-

View previous attemp 21 A successor auditor should always make inquiries of the predecessor auditor before accepting an audit engagement. The successor should specifically inquire about the predecessor's: 2 points Multiple Choice eBook References Awareness of the consistency in the application of generally accepted accounting principles between accounting.

18. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding. a. disagreements the predecessor had with the client concerning auditing procedures and accounting principles. b. the predecessor's evaluation of matters of continuing accounting significance.

Response: We believe that the proposed requirement for the successor auditor to “document its inquiries and the results of those inquiries with the predecessor auditor” are appropriate and complete. We do not believe that a more prescriptive requirement is necessary as the successor auditor should be able to apply judgement as to the extent of their …

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's. Understanding as to the reasons for the change of auditors. A written understanding between the auditor and the entity concerning the auditor's responsibility for fraud is usually set forth in an.

Question #9 A successor auditor’s inquiries of the predecessor auditor should include questions regarding A. The predecessor’s evaluation of audit risk and judgment about materiality. B. Subsequent events that occurred since the predecessor’s audit report was issued. C. The predecessor’s understanding as to the reasons for the change in auditors.

The successor auditor should ask the client to authorize the predecessor auditor to allow the successor auditor to review the predecessor auditor's working papers relating to contingencies in order for the successor auditor to become aware of potential audit issues. The successor auditor should also request to review the predecessor's working papers relating to internal …

In this regard, what inquiries should the successor auditor make of the predecessor auditor? Information that might bear on the integrity of management. ? Disagreements with management about accounting policies, auditing procedures, or other similarly significant matters.