What is Predecessor auditor?
In short
The predecessor auditor is the auditor who audited the most recent financial statements, or was engaged to, and has resigned, declined to stand for reappointment or been notified that its services are ended.
Key takeaways
- Before accepting, the successor must ask the predecessor about matters such as management's integrity, disagreements and the reasons for the change, after the client permits it.
- Reviewing the predecessor's working papers is optional and happens after acceptance.
- If the client won't permit the predecessor to respond, the successor considers declining the engagement.
Where it's tested
AUD: Engagement Acceptance & Quality Management — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Before accepting a new audit engagement, who is responsible for initiating communication with the predecessor auditor, and what permission is required?