What is a Predecessor Auditor?A predecessor auditor is an auditor who conducted the audit for a client in prior periods, but who no longer does so. This situation arises in any of the following circumstances: Show
When a successor auditor is appointed to an audit engagement, the successor may need to communicate with the predecessor auditor regarding various issues that are then incorporated into the successor's audit. If so, the successor auditor will need the client’s permission to discuss matters with the predecessor auditor. Related CoursesHow to Conduct a Compilation Engagement How to Conduct a Review Engagement How to Conduct an Audit Engagement Homework Help This preview shows page 1 - 3 out of 9 pages. RQ8-2What are the responsibilities of the successor and predecessor auditors when a company ischanging auditors?Select the choice that best describes the responsibilities of the successor auditors when acompany is changing auditors.A.The successor auditor is required by accounting standards to hire an professional investigator toobtain information about the reputation and background of key members of management.B.The successor auditor is required by accounting standards to review the company's tax returnsfor the previous five years.C.The successor auditor is required by auditing standards to communicate with the company'sbank.D.The successor auditor is required by auditing standards to communicate with the predecessorauditor.Answer: D Your answer is correct.Select the choice that best describes the responsibilities of the successor auditors when acompany is changing auditors. Get answer to your question and much more RQ8-6 (book/static)When a CPA has accepted an engagement from a new client who is a manufacturer, it iscustomary for the CPA to tour the client's plant facilities. Discuss the ways in which the CPA'sobservations made during the course of the plant tour will be of help in planning and conductingthe audit.(Select all answers that apply.) Get answer to your question and much more Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 9 pages? Upload your study docs or become a Course Hero member to access this document what are the responsibilities of the successor and predecessor auditors when a company is changing auditors? the new auditor who is the successor is required to initiate communication with the predecessor auditor in order to help determine whether to accept the engagement. What are the responsibilities of the Supreme Court? what are the 3 responsibilities of the supreme court. what are the responsibilities of the successor and predecessor auditors when a company is changing auditors? the new auditor who is the successor is required to initiate communication with the predecessor auditor in order to help determine whether to accept the engagement. What responsibilities does the predecessor auditor have if any regarding the successor auditor's inquiries according to the auditing standards?The predecessor auditor should ordinarily permit the successor auditor to review working papers, including documentation of planning, internal control, audit results, and other matters of continuing accounting and auditing significance, such as the working paper analysis of balance sheet accounts, and those relating to … What is a potential successor auditor's responsibility for communicating with the predecessor auditors when dealing with a prospective new client?The successor auditor has the responsibility to initiate contact with the predecessor auditor to ask about the client before the engagement is accepted; the predecessor has no responsibility to initiate this contact, even when aware of matters bearing on the integrity of management. What is the responsibility of a successor auditor SA with respect to communicating with the predecessor auditor PA in connection with a prospective new client?The successor auditor has no responsibility to contact the predecessor auditor. … The successor auditor should obtain permission form the prospective client to contact the predecessor auditor. c. The successor auditor should contact the predecessor auditor regardless of whether the prospective client authorizes contact. What is the purpose of Predecessor Successor auditor communications?The purpose of the predecessor-successor auditor communications is to help an auditor determine if a firm should engage with a new client. What is a successor auditor?The term successor auditor refers to an auditor who is considering accepting an engagement to audit financial statements but has not communicated with the predecessor auditor as provided in paragraphs . Who is responsible for initiating the communication between the predecessor and successor auditors?5-2 The successor auditor is responsible for initiating the communication with the predecessor auditor. However, the successor auditor should request permission of the prospective client before contacting the predecessor auditor. Which of the following statements is true regarding an auditor's communications with a predecessor auditor prior to engagement acceptance?Which of the following statements is true regarding an auditor’s communications with a predecessor auditor prior to engagement acceptance? Inquiries addressing specific matters are required; or
example, the predecessor’s understanding for the reasons for the change in auditors. What is the meaning of predecessor auditor?A predecessor auditor is an auditor who conducted the audit for a client in prior periods, but who no longer does so. … The auditor has declined to return for the next audit. The auditor did not complete the prior audit engagement. How can I communicate with previous auditors?Communication with the Retiring Auditor through E-mail In the opinion of the Council, communication by a letter sent “Registered Acknowledgement due” or by hand against a written acknowledgement would in the normal course provide such evidence.” What if the predecessor auditor refuses to give the current auditor of a non issuer access to the documents what should the current auditor do?if the predecessor auditor refuses to give the current auditor of a nonissuer access to the documentation, what should the current auditor do? … the independent auditor is SOLELY responsible for reporting on the FS. When a prospective client refuses to permit the predecessor auditor to respond the successor auditor should?If a prospective client refuses to permit the predecessor to respond or limits the response, the successor auditor should inquire as to the reasons and consider the implications of that refusal in deciding whether to accept the engagement. 6. What are the two most important qualities for an operational auditor?18) The two most important qualities for an operational auditor to possess are independence and competence. What are the basic information should an auditor consider prior to accept or reject a client?Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client’s management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or … What's the importance of engagement proposal to new client and continuing client?The importance of engagement letters Engagement letters define the business contract between a professional firm and its clients. It outlines the fee structure, responsibilities and obligations of the firm and the client. Without it, each party can be in legal limbo. Which of the following inquiries should be made of a predecessor auditor before accepting a new client engagement?Before accepting an engagement to audit a new client, a CPA is required to obtain: The prospective client’s consent to make inquiries of the predecessor. The understanding with the client regarding a financial statement audit generally includes which of the following matters? The responsibilities of the auditor. When the prior auditor who is being replaced receives a communication from the proposed new auditor he or she should?When the prior auditor who is being replaced receives a communication from the proposed new auditor, he or she should: Reply advising of any reasons why the proposed accountant should not accept the appointment. When an auditor is planning an audit the auditor should?When an auditor is planning an audit, the auditor should: Consider whether the extent of substantive procedures may be reduced based on the results of the internal control questionnaire. Make preliminary judgments about materiality levels for audit purposes. What responsibility did the auditors have to discuss their concerns with the entity's audit committee?The auditor should discuss with the audit committee, or determine that management has adequately discussed with the audit committee, the basis for the determination that the uncorrected misstatements were immaterial, including the qualitative factors36 considered. What are auditors required to communicate to the audit committee?The auditor should communicate to the audit committee those corrected misstatements, other than those that are clearly trivial,37/ related to accounts and disclosures that might not have been detected except through the auditing procedures performed, and discuss with the audit committee the implications that such … Is NOC required for change of auditor?There is no requirement to obtain NOC from previous auditor under CA Act. How can auditor resigns his appointment?The auditor has to give his written consent to such an appointment. The company should file the notice of appointment of auditor to the Registrar of Companies, i.e. ROC (“Registrar”) within fifteen days of such an appointment. An auditor may leave the company by resigning from it. What is NOC from previous auditor?2 Is NOC (no objection certificate) required from previous auditor? Ans: The clause provides for communication with previous auditor where he has an opportunity to safeguard his interest and also public interest. There is no provision of NOC and it is an inherent right of client to decide its auditor and change. Which of the following factors most likely would cause an auditor to decline a new audit engagement?Which of the following factors most likely would cause an auditor to decline a new audit engagement? Failure of management to satisfy the preconditions for an audit. What is a potential successor auditor's responsibility for communicating with the predecessor auditors when dealing with a prospective new client?The successor auditor has the responsibility to initiate contact with the predecessor auditor to ask about the client before the engagement is accepted; the predecessor has no responsibility to initiate this contact, even when aware of matters bearing on the integrity of management. When an auditor is asked to accept a new client?When an auditor is asked to accept a new client: The auditor must ask permission of the client before contacting the process or auditor. An entity acceptance questionnaire, checklist, or memo is generally prepared to document the investigation. What is the role of Commission on Audit?The Commission on Audit shall have the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions, agencies, or instrumentalities, … Who are the users of report of operational audit?Operational audits are usually conducted by the internal audit staff, though specialists can be hired to conduct reviews in their areas of expertise. The primary users of the audit recommendations are the management team, and especially the managers of those areas that have been reviewed. What is the typical objective of an operational audit?The aim of an operational audit is ultimately to optimize efficiency. By auditing the business’s internal policies and procedures, the company can identify trouble spots and operate more effectively. What is the responsibility of a successor auditor to communicate with the predecessor?The successor auditor has no responsibility to contact the predecessor auditor.
When an audit client changes its auditor the successor auditor should?The successor auditor should communicate to the predecessor auditor any information that the predecessor auditor may need to consider in accordance with section 561, Subsequent Discovery of Facts Existing at the Date of the Auditor's Report, which sets out the procedures that an auditor should follow when the auditor ...
What responsibilities does the predecessor auditor have if any regarding the successor auditor's inquiries according to the Auditing standards?The predecessor auditor should ordinarily permit the successor auditor to review working papers, including documentation of planning, internal control, audit results, and other matters of continuing accounting and auditing significance, such as the working paper analysis of balance sheet accounts, and those relating to ...
What are the procedures auditors need to perform before accepting a new client?Before accepting an engagement to audit a new Service organization, the service auditor must perform their due diligence around the client acceptance process, anticipate acceptance issues, address the client risk, and perform risk acceptance procedures.
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What are the responsibilities of the successor and predecessor auditors when a company is changing auditors?
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