When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining:
A)whether the predecessor's work should be utilized.
B)whether, in the predecessor's opinion, the financial statements are materially correct.
C)whether, in the predecessor's opinion, the company's internal controls have been satisfactory.
D)whether the engagement should be accepted.

Question

Quizplus · Accepted Answer

When a CPA is approached to perform an audit for the first time, it is important to make inquiries of the predecessor auditor to determine whether the engagement should be accepted. The predecessor may provide information about the client's integrity, disagreements, or any issues with their accounting policies or practices that may assist the successor in making a decision about whether to accept the engagement or not. Options A-C may be important, but they are not the main purpose of making inquiries of the predecessor auditor.

When a CPA Is Approached to Perform an Audit for the First