Predecessor auditor checklist 11 of this section states, "The successor auditor should request that the client authorize the predecessor auditor to allow a review of the predecessor auditor's working papers. 07 through . A12) Multiple select question. the financial statements were not audited or were audited in the prior period by a predecessor auditor). Due to a business decision, TechRise Corp decides to switch their auditors and hires Audit Firm B for the next financial year. , Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank______. Example Letter E in Appendix 1sets out the matters ordinarily addressed, though amendments may be required to reflect circumstances specific to the December 2018 Governmental Audit Documentation Checklist I-1 Governmental Audit Documentation Checklist . had considered The auditors from Audit Firm A are therefore the “predecessor auditors. 147 narrowly revises AU-C section 210, Terms of Engagement , to require an auditor, once management authorizes the predecessor auditor to respond Jul 12, 2022 · After the successor auditor asks the predecessor auditor's management to respond fully to their inquiries, the predecessor auditor is required to respond in a timely manner. Below is a snapshot of what the auditor must do before accepting an engagement for an initial audit when a predecessor auditor exists. 147 does not revise the audit requirement that the auditor request management to authorize the predecessor auditor to respond fully to the auditor’s inquiries regarding matters that will assist Multiple Selections the auditor must ask permission of the client before contacting the predecessor auditor an investigation of the client should be conducted after the engagement has been accepted an entity acceptance questionnaire, checklist or memo is generally prepared to document the investigation, A public accounting firm may disassociate the auditor must ask permission of the client before contacting the predecessor auditor an entity acceptance questionnaire, checklist or memo is generally prepared to document the investigation Generally, the three preliminary engagement activities are ______. ” They have a deep understanding of TechRise Corp’s financials, business processes, and risk areas from their years of auditing the company. He was cordial, respectful, and Requirements and guidance related to the auditor’s inquiries of a predecessor auditor about matters that will assist the auditor in determining whether to accept the engagement. Reviewing the predecessor auditor’s workpapers is one of the more unpleasant duties of an auditor. A29–. " . 07–. A28) Predecessor Auditor’s Report Reissued (Ref: par. In doing so, SAS No. Executive Summary “SAS No. We are especially supportive of the proposed amendments to require the successor auditor to inquire of the predecessor auditor regarding identified or suspected fraud or noncompliance with laws f) Whether the audit firm has sufficient and appropriate resources to undertake the engagement; g) Assessing the audit firm’s independence and conflicts of interest; h) The client’s relationship with the existing/predecessor auditor; i) Assessing the skill, competence and capability to perform the audit engagement; Communications Between Predecessor and Successor Accountants 2669. the auditor must ask permission of the client before contacting the predecessor auditor an entity acceptance questionnaire, checklist or memo is generally prepared to document the investigation an investigation of the client should be conducted after the engagement has been accepted Jul 28, 2023 · High audit risk exists in engagements with unaudited or differently audited prior period Financial Statements, necessitating compliance with SQC 1, execution of additional procedures as per SA 510, evaluation of predecessor auditor's report modifications, and appropriate reporting based on the conclusions drawn. Appendix A - Illustrative Client Consent and Acknowledgment Letter. A9–. [. 08footnote7states Study with Quizlet and memorize flashcards containing terms like An individual or organization possessing expertise in a field other than accounting or auditing whose work is used to assist the auditor in obtaining sufficient, appropriate evidence is defined by auditing standards as a(n) ______ ______. . 4 1 0 obj > endobj 2 0 obj > endobj 3 0 obj > endobj 4 0 obj >stream xœÍZÝ ã6 ÿCЗ&ÀƵ$[Vö×k{wèmÛíÜÃáÚ‡l&³³í|d'7×ö¿¯(‘ å¯h ·@±˜llÓ4E‘?þHçýââ/—‹z ÿ ß. The predecessor auditor’s responses to inquiries should be based on known facts, absent unusual circumstances, unless prohibited by applicable law. 10. o the auditor must ask permission of the client before contacting the predecessor auditor o an investigation of the client should be conducted after the engagement has been accepted o an entity acceptance questionnaire, checklist or memo is generally prepared to Apr 15, 2024 · The audit checklist for SA 510 details responsibilities for auditors regarding opening balances in initial audits, covering scenarios where previous financial statements were unaudited or audited by a predecessor, ensuring proper accounting policies and absence of material misstatements. What is an initial audit engagement? Initial audits are audits that are conducted for the first time by the audit firm (i. A27–. . 08 and . A2 Twopredecessorauditorsmayexist:theauditorwhoreportedonthe Aug 16, 2022 · These auditor inquiries must be made after management authorizes the predecessor auditor to respond to such inquiries. The auditor should request management to authorize the predecessor auditor should not be expected to be available to respond to in-quiries until a successor auditor has been selected by the prospective client and has accepted the engagement subject to the evaluation of the communications with the predecessor auditor as provided in paragraphs . Porter, CPA. , True or false: The extent of effort that goes into evaluating a new client is normally much %PDF-1. 84, Communications Between Predecessor and Successor Auditors, supersedes SAS No. Assessment ISA 200 “Overall objectives of the independent auditor and the conduct of an audit in accordance with International Standards on Auditing” state that audit evidence is necessary to support the auditor’s opinion and report. 10 The auditor should prepare audit documentation that enables an ex-perienced auditor, having no previous connection to the audit, to understand: a. The At a Glance also explains that SAS No. Reviewing the Predecessor Auditor’s Workpapers. 05). The results of the audit procedures performed and the Predecessor Auditor’s Reissuance of the Auditor’s Report in Comparative Financial Statements (Ref: par. AICPA ISSUES NEW STANDARD ON COMMUNICATIONS BETWEEN PREDECESSOR AND SUCCESSOR AUDITORS By Gary A. 7, and among other things, (a) revises the definitions of predecessor and successor auditors, (b) adds additional inquiries that the successor must make of the predecessor Communicating with the predecessor auditor when there has beenachangeofauditors,inaccordancewithsection2102 (Ref: Audit Strategy (Ref: par. As I visited him, I was uncomfortable. The predecessor auditor should ordinarily permit the successor auditor to review working papers, including documentation of planning, internal control, audit results, and other matters of continuing accounting and auditing significance, such as the working paper analysis of balance sheet accounts, and those relating to contingencies. The predecessor auditor may wish to request a consent and acknowledgment letter from the client to document this author Opening Balances —Initial Audit Engagements 621 Definitions Predecessor Auditor (Ref: par. Instructions for Use of Checklist . Select all that apply When an auditor is asked to accept a new client, _____. If so, the successor auditor will need the client’s permission to discuss matters with the predecessor auditor. And what the predecessor auditor must do. e. Mar 2, 2019 · And create an audit program related to opening balances. Study with Quizlet and memorize flashcards containing terms like True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to continue with an existing client. Jul 20, 2024 · When a successor auditor is appointed to an audit engagement, the successor may need to communicate with the predecessor auditor regarding various issues that are then incorporated into the successor's audit. an investigation of the client should be conducted after the engagement has been accepted communication with the predecessor auditor should occur an entity acceptance questionnaire, checklist, or memo is generally prepared to document the investigation the firm must consider if it is independent of the perspective client Select all that apply When an auditor is asked to accept a new client, _____. an entity acceptance questionnaire, checklist or memo is generally prepared to document the investigation the auditor must ask permission of the client before contacting the predecessor auditor Many public accounting firms adopt a policy of not completing the current audit until ______ fees have been paid. Related AccountingTools 322, "The Auditor's Consideration of the Internal Audit Function in an Audit of Financial Statements"; AU 336, "Using the Work of a Specialist"; 1 and AU 315 (SAS No. The written request for access to audit working papers may be sent to the Predecessor Auditor and addressed to the firm of the Predecessor Auditor as the auditor, marked Jun 30, 2021 · between predecessor and successor auditors as part of the successor auditor’s client acceptance process. 84), "Communication Between Predecessor and Successor Auditors. ]has the capabilities to perform the audit [. The nature, timing, and extent of auditing procedures performed to comply with SASs and applicable legal and regulatory requirements; b. A30). 12 Exhibit Illustrative Successor Accountant Acknowledgment Letter Paragraph. 10 Request for access to a Predecessor Auditor’s audit working papers shall be made in writing copying the Client. 24 1. I did so recently. ]. Paragraph . This checklist was developed from the AICPA’s PEER Review Government Audit Engagement Checklists for use by the Office of the State Auditor’s reviewers of audits of Minnesota Count ies. When audits have been previously conducted by a predecessor auditor, the successor auditor (current year auditor) should make inquirie audit evidence regarding the opening balances by reviewing the predecessor auditor’s working papers. 2. ü —{øøuùÙWj©ôòòz¡ÂeµÜn—]ë–Ë˻ŠV_¬õê›õ¦Yý}½Ñ«/× ³zåO]ú£n›Ž¿†«ŸÃÑ×k Oÿsmü—ŽÅÝvõ œ í ¿ qP $ÿê¿üËÿ½¦ ?ÀÇKxD”úÛ Where the predecessor auditor agrees to provide the successor auditor access to the auditor’s audit working papers, such access ordinarily involves an exchange of letters between the two auditors. The predecessor auditor is a friend of mine. ftsqwbn frfujjm jeu bdz rpzepdkbu wifsxaf qfknih wxazv urzkb srm
Predecessor auditor checklist. A28) Predecessor Auditor’s Report Reissued (Ref: par.
