Week 2 - Engagement - Replacing a Previous Auditor Flashcards
1
Q
Before accepting a new appointment, what must an audit firm do?
A
Get the client’s permission to write to the outgoing auditors to ask if there is any professional reason why they may not accept the appointment
2
Q
What happens if the client refuses permission?
A
We must refuse the appointment - suspicious
3
Q
What should we request from the outgoing auditor?
A
Request in writing whether there is any professional reason why the appointment may not be accepted
4
Q
What must the outgoing auditors do?
A
Indicate any professional problems with the client i.e disputes, unpaid fees etc
5
Q
What does this engagement form part of?
A
Your audit risk
6
Q
Why do we need to go through this process?
A
Professional etiquette and an additional safeguard
