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Week Eight - was a legal issue in this instance that does...

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(c)      Evaluate and discuss whether Black and Beale conducted themselves in  accordance with generally accepted auditing standards. For prospective clients that have been previously audited by another CPA firm, the new auditor is required by auditing standards (AU 315) to communicate with the predecessor auditor. Calling and leaving a voicemail message and having the predecessor auditor who does not return your call hardly qualifies as communication. In addition, being satisfied after a conversation with the client about the previous auditor does not satisfy the criteria of a response. Even though there
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Unformatted text preview: was a legal issue in this instance, that does not remove the obligation of the previous auditor to respond, or the new auditor to proceed with the obviously biased opinion of the client as to why the previous auditor is no longer doing the audit. Secondly, just accepting the word of the client that a contract is “their standard contract” violates auditing standards. At a very minimum, the auditor should engage the services of an impartial auditor that has French-reading abilities....
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