ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional appointments
Tamsin & Co has tendered successfully and been appointed auditor of Oakfield Ltd. Which action best reflects good practice before accepting the appointment as the new auditor?
The incoming auditor should, with the client's permission, contact the existing auditor before accepting to ask whether there are professional reasons not to accept. This allows the firm to learn of any ethical or legal concerns; refusal of permission should itself raise concern.
- ACommunicate with the existing auditor, after obtaining the client's permission, to ask about any professional reasons why the appointment should not be acceptedCorrect
- BAccept the appointment, then communicate with the existing auditor after the audit starts
- CAvoid contacting the existing auditor as this breaches confidentiality in all cases
- DRely on the directors' assurance that there are no matters to report
Explanation
The proposed auditor must request permission from the client to contact the existing auditor. If permission is refused, the firm should consider not accepting. Contact should occur before acceptance so that any ethical or legal issues are known.
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