Asked by: Cataisa Paepkeasked in category: General Last Updated: 25th June, 2020
What are the responsibilities of the successor and predecessor auditor when a company is changing auditors?
Also question is, what is a successor auditor?
A successor auditor is the outside auditor of an organization that replaces the predecessor auditor. Thus, the successor auditor conducts the audit for the current year when there was a predecessor auditor in the immediately preceding year.
Beside above, 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.
Also to know, what inquiries should the successor auditor make of the predecessor auditor?
Information that might bear on the integrity of management. ? Disagreements with management about accounting policies, auditing procedures, or other similarly significant matters.
What is the purpose of an engagement letter what subjects should be covered in such a letter?
An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement.