In the Investigation of a Potential New Client, If the Client

question 35

Multiple Choice

In the investigation of a potential new client, if the client refuses to give permission to inquire of the predecessor auditor, or if the predecessor does not respond fully, the successor auditor should:

• A) consider the implications in making the accept/reject decision.
• B) not accept the engagement.
• C) request an AICPA-sanctioned peer review of the predecessor.
• D) request assistance from the SEC.
• E) immediately inform the appropriate state board of accountancy.