Auditor's Responsibilities

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What topics should a successor auditor discuss with the predecessor auditor before accepting an audit engagement? What responsibilities does the predecessor auditor have, if any regarding the successor auditor’s inquiries? Regarding the predecessor auditor’s work papers, must the predecessor auditor allow the successor auditor access to their work papers? Explain your answer. What is the client’s role in the successor auditor’s communications with the predecessor? When accepting a new client, the successor auditor should obtain from the predecessor auditor information about the integrity of proposed client’s management.. The topics they should discuss are: - Reasons for their dismissal. - Problems they incurred with management whilst conducting their audits. - The relationship they shared with the client, eg: intimidating, controlling, difficulties in obtaining information. - Discuss if there are any unusual risks and special circumstances they should be aware of. - What they believe are the most concerning areas when conducting the audit. After such a discussion, under section 210.10 of APES 110 Code of Ethics for Professional Accountants the proposed auditor should determine whether there are reasons for not accepting the engagement. In order to communicate with the existing auditor, the proposed auditor needs to obtain the prospective client’s permission. If refused the auditor should consider reasons for such disapproval and decline the engagement because it can be an indication of an untrustworthy management. If permission is granted, the proposed auditor can request the existing auditor to supply all information (in writing) that will enable the proposed accountant to make a decision as to whether to accept the audit engagement. Where the client provides permission the previous auditor’s must provide the information requested The previous auditor

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