The predecessor auditor is required to respond to the request of the successor
The predecessor auditor is required to respond to the request of the successor. The successor auditor should request permission from the prospective (at this point) client to make an inquiry of the predecessor auditor, and request that the predecessor auditor be authorized to communicate. A “reasonable request,” as defined in the CPA Ontario Code of Professional Conduct - Guidance - Rule 303, for information related to the client, includes an opportunity for the successor to discuss with the predecessor the following: The predecessor must always respond fully to all inquiries made by the successor auditor. IESBA Code requires that the predecessor auditor, on request by a proposed successor auditor, provides all such facts and other information concerning such noncompliance that, in the - predecessor auditor’s opinion, the proposed successor auditor needs to be aware of before deciding whether to accept the audit appointment. there are actual or potential legal problems between the client and the predecessor. Like its predecessor, SAS No. All costs that could be attributed directly to the project were accounted for as deferred charges and classified on the balance sheet on December 31, 20x1, as a noncurrent asset. A) the predecessor auditor has poor relations with the successor auditor. b. The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when: the predecessor auditor has poor relations with the successor auditor. Without express consent from the client, the predecessor auditor does not have authorization to discuss confidential information. Even when a A. successor auditor request management to authorize the predecessor auditor to respond fully to the successor auditor’s inquiries regarding matters that will assist the successor auditor in determining whether to accept the engagement. The term "predecessor auditor" refers to an auditor who has resigned or who has been notified that his services have been terminated. permission needs to be obtained from the client first as a requirement with the Code of Professional Conduct The predecessor is required to respond to the successors request for information; however the response may be limited to Aug 21, 2024 · Question 31 The research staff of International Research Corporation devoted its entire efforts toward developing a new pollution-control device during 20x1. Engaging with a successor auditor often requires certain protocols to be %PDF-1. B) the client is dissatisfied with the predecessor’s work. 17) The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when: A) the predecessor auditor has poor relations with the successor auditor. The term "successor auditor" refers to an auditor who has accepted an engagement or an 9. If management refuses to authorize the predecessor auditor to respond, or limits the response, the While the burden of initiating the communication rests on the successor auditor, the predecessor auditor must respond to the request for information. 24 1. 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. 11 of this section states, "The successor auditor should request that the client authorize the predecessor auditor to allow a review of the predecessor auditor's working papers. The successor auditor takes over the audit responsibilities from the predecessor auditor. B) the client is dissatisfied with the predecessor's work. An auditor is required to establish an understanding with a client regarding the responsibilities for each engagement. The predecessor auditor is required by auditing standards to communicate with the successor auditor. Mar 4, 2024 · Thus, the successor auditor conducts the audit for the current year when there was a predecessor auditor in the immediately preceding year. B) the predecessor auditor has poor relations with the successor auditor. ” The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when. Paragraphs. A) True B) False A successor auditor should request the new client to authorize the predecessor auditor to allow a review of the predecessor's: Audit working papers. However Therefore, as an option to address identified or One of the results of these efforts by the ASB is the issuance of SAS No. A customary request by a potential successor auditor pertains to accessing predecessor auditor work papers. The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when: A) the client is dissatisfied with predecessor's work. Therefore, the request will be embedded with the planning of the audit by the successor. The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when: a. C. the predecessor auditor has poor relations with the successor auditor. The auditor should inquire about the following of the predecessor auditor: Fraud or suspected fraud involving management, employees with significant internal control roles, or others when fraud resulted in a material misstatement of the OAG Guidance. B) help the successor auditor to evaluate whether to accept the engagement. , if a predecessor auditor exists, request management to authorize the predecessor auditor to respond fully to the auditor’s inquiries regarding matters that will assist the (successor) auditor in determining whether to accept the engagement. Predecessor auditor has poor relations with successor auditor b. the predecessor auditor is required to respond to the request of the successor auditor fo9r information, but the response can be limited to stating that no information will be provided when: c. The successor auditor might have been hired because the predecessor was fired, or because the client is required by law to change auditors periodically. Study with Quizlet and memorize flashcards containing terms like A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the:, A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the (the predecessor auditor). The predecessor auditor is required to respond to the successor's request for information; however, the response may be limited to stating that no information will be given. The successor auditor is required by auditing standards to communicate with the predecessor auditor Describe the responsibilities of the successor auditors when a company is changing auditors? The predecessor auditor is required to respond to the successor's request for information; however, the response may be limited to stating that no The successor auditor This is because the successor auditor should ask the predecessor auditor specific questions about the predecessor's evaluation of matters of continuing accounting significance. D. 147 narrowly revises AU-C section 210, Terms of Engagement , to require an auditor, once management authorizes the predecessor auditor to respond Appendix A - Illustrative Client Consent and Acknowledgment Letter. 1: A registrant (“successor”) shall not accept an engagement with respect to the practice of public accounting or the provision of a professional service not inconsistent therewith, where the successor is replacing another registrant or other professional (“predecessor”), without first communicating with such predecessor and enquiring whether there are any circumstances that should Aug 16, 2022 · The auditor should request management to authorize the predecessor auditor to respond fully to the inquiries. 84 provides guidance on predecessor-successor communications when a change of auditors is in process or has taken place. SAS No. NASBA also agrees that if the succ essor auditor is required to request that management authorize predecessor’sthe full response to his or her inquiries about NOCLAR, and management declines, that action should trigger a red flag to the successor auditor. Knowledge Transfer From Predecessor Auditor to Auditor Are the proposed requirements appropriate and complete, including whether it is appropriate to continue to provide an exception that permits the predecessor auditor to decline to respond to the 200 The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when: C) there are actual or potential legal problems between the client and the predecessor. D) the predecessor auditor has Jun 9, 2006 · predecessor auditor, which auditor, the predecessor or the successor, may audit the adjustments to prior-period financial statements?2/ A1. 302. 41. c. Request for Specific Comment 2: Feb 25, 2021 · between Predecessor and Successor Auditors). If the predecessor does respond, consider asking to see their prior year’s audit work papers. 147 does not revise the audit requirement that the auditor request management to authorize the predecessor auditor to respond fully to the auditor’s inquiries regarding matters that will assist the auditor in determining whether to Requirements and guidance related to the auditor’s inquiries of a predecessor auditor about matters that will assist the auditor in determining whether to accept the engagement. A) True B) False [The following matter subject to inquiry is effective for audits of fiscal years beginning on or after December 15, 2014. SAS no. Feb 5, 2019 · The purpose of this Statement is to provide guidance on communications between predecessor and successor auditors when a change of auditors has taken place or is in process. Study with Quizlet and memorize flashcards containing terms like The permanent file of an auditor's working papers generally would not include:, A successor auditor most likely would make specific inquiries of the predecessor auditor regarding:, A successor auditor ordinarily should request to review the predecessor's working papers relating to: and more. C) there are legal problems between the client and predecessor. 47–. C) Facts known to the predecessor auditor that might bear on the integrity of management. The successor auditor is required by auditing standards to communicate with the predecessor auditor. 84, Communications Between Predecessor and Successor Auditors, as the successor auditor but hereinafter referred to as the reauditor) should not place reliance on the work of the predecessor auditor. a predecessor who limits his or her response to the inquiries should tell the successor auditor that this is the case. ” A) The successor auditor has no responsibility to contact the predecessor auditor B) The successor auditor should obtain permission from the entity before contacting the predecessor auditor C) The successor auditor should contact the predecessor regardless of whether the prospective client authorizes contact D) The successor auditor need not . The auditor conducting a reaudit engagement (de fined in SAS No. Reviewing Predecessor Audit Work Papers. The predecessor auditor is required to respond promptly and fully, on the basis of known facts, to the successor auditor’s reasonable inquiries. The successor auditor will need to review the working The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when a. B) The predecessor auditor's understanding of the reasons for the change of auditors. 2014-002, states that "[t]he amendments to AU sec. See full list on pcaobus. Feb 25, 2021 · 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. The predecessor auditor may wish to request a consent and acknowledgment letter from the client to document this author the auditor should request management to authorize the predecessor auditor to respond fully to the auditor’s inquiries regarding matters that will assist the auditor in determining whether to accept the engagement. org Jul 12, 2022 · If management does not authorize the predecessor auditor to respond to inquiries, or if they limit the predecessor auditor’s responses, the successor auditor is required to evaluate the reasons and weigh the pros and cons of accepting the engagement. If the predecessor auditor decides, due to unusual circumstances such as pending litigation, not to respond fully to the inquiries, the reason the response is limited should be clearly stated. Either the successor auditor or the predecessor auditor may audit the adjustments made to prior-period financial statements so long as the auditor is independent and registered with the PCAOB. the client is dissatisfied with the predecessor's work. B) the predecessor believes the client lacks integrity. A request for access to ‘all relevant information’ by a successor auditor can only be made once the successor auditor has been appointed as statutory auditor. As a predecessor auditor, we should supply “reasonable” information to the successor auditor concerning the client. and more. A successor auditor is an audit firm or individual auditor that is engaged to audit financial statements for a period subsequent to that of the former or “predecessor” auditor. A) True B) False auditor should document the inquiries of the predecessor auditor and the results of those inquiries. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding: a. However, inquiries of the predecessor auditor may still be relevant for the purpose of obtaining information that is Jun 7, 2021 · We reiterate our comment above. If so, the successor auditor will need the client’s permission to discuss matters with the predecessor auditor. The successor must discuss with the predecessor matters bearing on the engagement prior to accepting the engagement. Paragraph . The purpose of the requirement in having communication between the predecessor and successor auditors is to: A) allow the predecessor to disclose information which would otherwise be confidential. , A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed 38. 7 of the same name. 6 %âãÏÓ 111 0 obj > endobj 130 0 obj >/Filter/FlateDecode/ID[]/Index[111 45]/Info 110 0 R/Length 94/Prev 116358/Root 112 0 R/Size 156/Type/XRef/W[1 2 1 2668 Statements on Standards for Accounting and Review Services predecessoraccountant. successor auditor, but the predecessor auditor is required to respond to the request for information. predecessor accountant to respond fully to those inquiries. However, because of the requirements related to confidentiality, the predecessor must obtain the former client's permission prior to providing information to the successor. If a prospective client refuses to permit the predecessor auditor to respond or lim-its the response, the successor auditor should inquire as to the reasons and consider the implications of that refusal in deciding whether to accept the en-gagement. The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when A. predecessor auditor to respond fully to the successor auditor's inquiries. Many CPA firms evaluate existing clients annually to determine whether there are reasons for not continuing to do the audit. Jul 20, 2024 · When a successor auditor is appointed to an audit engagement, the successor may need to communicate with the predecessor auditor regarding various issues that are then incorporated into the successor's audit. Study with Quizlet and memorize flashcards containing terms like The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when:. , Auditors need an understanding of the client's business and A) Disagreements between the predecessor auditor and management as to significant accounting policies and principles. 52ofsection80,CompilationofFi- nancialStatements,andparagraphs Apr 8, 2022 · The predecessor auditor is required to respond to the request of the successor auditor for Information, but the response can be limited to stating that no Information will be provided when A) the predecessor belleves that the client lacks integrity. The request may be made of the immediate predecessor auditor only. 10. 6. If management refuses to authorize the predecessor auditor to respond, or limits the response, the auditor should inquire about Study with Quizlet and memorize flashcards containing terms like 3 primary reasons why adequate planning is beneficial/essential, acceptable audit risk, will AAR be set higher for a long term or a brand new audit client? and more. 84, Communications Between Predecessor and Successor Auditors, in October 1997, that supersedes SAS No. 84 says, The predecessor auditor should respond promptly and fully, on the basis of known facts, to the successor auditors reasonable inquiries. The successor may choose not to attempt any communication with the predecessor auditor. 315 require the auditor to make inquiries regarding the predecessor auditor's understanding of the company's relationships and transactions with related parties and For example, include copies of letters and emails in your audit file. If the prospective client refuses to permit the predecessor accountant to respond or limits the response, the successor accountant should inquire about the reasons and consider the implications of that refusal in connection with acceptance of the engagement. B. When a successor auditor requests information from a company's previous auditor, and there are legal problems or disputes between the client and the predecessor auditor, the predecessor auditor's response to the new auditor may be limited to stating that no information will be provided. The release adopting this provision, PCAOB Release No. We do not believe that a more prescriptive requirement is necessary as the successor auditor should be able to apply 44) The predecessor auditor is required to respond to the request of the successor auditor for Information, but the response can be limited to stating that no information will be provided when A) the predecessor believes that the client lacks integrity. Dec 4, 2023 · The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when: A) the predecessor auditor has poor relations with the successor auditor. In doing so, SAS No. Related AccountingTools When the auditor is required by law or regulation to audit a governmental entity, inquiries of the predecessor auditor for the purpose of obtaining information about whether to accept the engagement may not be relevant. The predecessor auditor is required to respond to the request of the successor from ACCOUNTING 201 at Tanta University Feb 25, 2021 · the IESBA Code requires that the predecessor auditor, on request by a proposed successor auditor, provide all such facts and other information concerning such non-compliance that, in the predecessor auditor’s opinion, the proposed successor auditor needs to be aware of before deciding whether to accept the audit appointment. hfmswm yrqkbxbm byzh oofo wlu wlrwhwk meliby glxyhi etv wtkuk