Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client.The new audit client's refusal to allow this communication to occur would impact Rodgers decision concerning:
A)the auditor's ability to design audit tests.
B)possible scope exception due to lack of access.
C)the desirability of accepting the prospective engagement.
D)violation of the GAAP rules concerning consistency and comparability of financial information.

Question

Quizplus · Accepted Answer

The refusal to allow communication with the predecessor auditor may indicate potential issues with the client, affecting the desirability of accepting the engagement.

Smith, CPA Has Requested Permission to Communicate with the Predecessor