AT-5907_pre engagement - CPA REVIEW SCHOOL OF THE...

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CPA REVIEW SCHOOL OF THE PHILIPPINES M a n i l a AUDITING THEORY PRE- E N GA G E MENT MULTIPLE CHO I CE Q UESTI O NS 1. Prior to the acceptance of an audit engagement with a client who has terminated the services of the predecessor auditor, the CPA should a. Contact the predecessor auditor without advising the prospective client and request a complete report of the circumstance leading to the termination with the understanding that all information disclosed will be kept confidential. b. Accept the engagement without contacting the predecessor auditor since the CPA can include audit procedures to verify the reason given by the client for the termination. c. Not communicate with the predecessor 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 predecessor auditor and request permission for the contact. 2. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor’s a. Opinion of any subsequent events occurring since the predecessor’s audit report was issued. b. Understanding as to the reasons for the change of auditors. c. Awareness of the consistency in the application of GAAP between periods. d. Evaluation of all matters of continuing accounting significance.
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  • Spring '16
  • asdfghjk
  • Financial audit, predecessor auditor

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