If a prospective client has been audited in the past, the successor auditor will typically rely solely on the representations about the client by the predecessor auditor.

Question

Quizplus · Accepted Answer

The successor auditor is required to perform their own audit procedures and obtain their own independent evidence to form an opinion on the client's financial statements. While the predecessor auditor's representations may provide some useful information, the successor auditor cannot solely rely on them without performing their own audit procedures.

If a Prospective Client Has Been Audited in the Past