Prior to the acceptance of an audit engagement with a client who has terminated the services of the previous auditor, the proposed auditor should:
A)contact the previous auditor without advising the prospective client and request a complete report of the circumstances leading to the termination with the understanding that all information disclosed will be kept confidential.
B)accept the engagement without contacting the previous auditor, since the proposed auditor can include audit procedures to verify the reason given by the client for the termination.
C)not communicate with the previous auditor, because this would in effect be asking the auditor to violate the confidential relationship between auditor and client.
D)advise the client of the intention to contact the previous auditor and request permission for the contact.

Question

Quizplus · Accepted Answer

It is important for the proposed auditor to obtain information about the circumstances leading to the termination of the previous auditor to assess any potential risks associated with the engagement. However, the proposed auditor should first obtain permission from the client before contacting the previous auditor to avoid violating any confidentiality agreements. Therefore, the best choice is to advise the client of the intention to contact the previous auditor and request permission for the contact.

Prior to the Acceptance of an Audit Engagement with a Client