Prior to the Acceptance of an Audit Engagement with a Client

question 12

Multiple Choice

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.

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Definitions:

Caught

Successfully captured or apprehended, especially in the context of pursuing someone or something that is elusive.

Field Goal

A score in various sports made by kicking, hitting, or shooting the ball through a goal or over a crossbar.

Frustration

A feeling of dissatisfaction or annoyance that arises when a person's progress towards a goal is blocked or impeded.

Comeback

A return to a previous level of performance, success, or activity after a decline or failure.