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

Zephyr & Co is asked to accept appointment as auditor of Brightwell Ltd, replacing Harlow LLP. Before accepting the nomination, what should Zephyr & Co do first under the IESBA Code?

Zephyr & Co should first obtain Brightwell's permission to contact Harlow LLP and then request information on any reasons or ethical matters relevant to acceptance. This respects client confidentiality and lets the proposed auditor decide on acceptance before taking the appointment, rather than after.

  1. ARequest permission from Brightwell's management to communicate with Harlow LLP, then ask Harlow to provide relevant informationCorrect
  2. BAccept the appointment and then contact Harlow LLP for the previous year's working papers
  3. CObtain Harlow LLP's audit working papers directly from the client's finance director
  4. DContact Brightwell's bankers to ask why Harlow LLP left

Explanation

The Code requires the proposed auditor to ask the client for permission to contact the existing auditor, and then to request information that helps decide whether to accept. Contact without client consent would breach confidentiality. Accepting first and asking afterwards defeats the purpose of the enquiry.

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