PA has been asked to accept the audit engagement of BarneyBlues Corporation.PA sent a letter to the predecessor auditor asking whether there was any reason why he should not accept the engagement.Assuming that the prior year audit went smoothly,what would be an appropriate response by the predecessor auditor?
A)Provide a brief statement that there is no reason of which he or she is aware that would prevent accepting the engagement.
B)Send a copy of the entire working paper file to PA.
C)Telephone PA and say that PA should not take the engagement because the fee charged was too large.
D)Send a copy of the tax returns and tax assessments to PA.

Question

Quizplus · Accepted Answer

The appropriate response by the predecessor auditor would be to provide a brief statement that there is no reason of which he or she is aware that would prevent accepting the engagement. This response would indicate that the prior year audit went smoothly and there are no issues that would prevent the new auditor from accepting the engagement. Sending the entire working paper file or tax returns and tax assessments would not be necessary or appropriate. The telephone call suggesting not accepting the engagement due to the fee charged would be unprofessional and inappropriate.

PA Has Been Asked to Accept the Audit Engagement of BarneyBlues