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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional appointments

Sable & Co is asked to accept appointment as auditor of Tern Ltd, replacing Moss LLP. Which step should Sable & Co take regarding professional clearance?

Sable & Co should first obtain Tern Ltd's permission to contact the existing auditor, then ask Moss LLP for information on any professional or ethical reasons relevant to accepting the appointment. Contacting without consent would breach confidentiality, and communication between firms is not forbidden.

  1. AContact Moss LLP without client permission to ask about the reasons for the change
  2. BObtain Tern Ltd's permission to communicate with Moss LLP, then request information about any ethical or professional reasons the appointment should not be acceptedCorrect
  3. CAccept the appointment and notify Moss LLP only once the audit is complete
  4. DAvoid contacting Moss LLP because the Code forbids communication between firms

Explanation

A proposed auditor must ask the client's permission to contact the existing auditor, then request relevant information on matters that might affect acceptance. If the client refuses permission, the firm should consider declining. Contacting without permission would breach confidentiality.

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