Communication between Predecessor and Successor Auditors

Question 1

Prior to acceptance of an initial audit engagement, the successor auditor should

Answer 1

request permission from management to make full inquiries of the predecessor auditor

Question 2

If management refuses or limits the scope of these inquiries, the successor

Answer 2

should ask for the reason and then evaluate the impact of the refusal on the decision to accept the engagement.

The successor always worries that the previous auditor holds information about material misstatements or other problems that should be known before accepting the engagement.

Question 3

Auditing standards states that the successor auditor’s inquiries should include

Answer 3

specific questions regarding, among other things, facts that bear on the integrity of management; on disagreements with management as to accounting principles, auditing procedures, or other similarly significant matters.

Question 4

Second Communications by the Successor Auditor to the Predecessor Auditor after acceptance

Answer 4

To review the working papers related to the opening balances and the consistency of the application of generally accepted accounting principles