Before accepting an engagement to audit a new entity, an auditor is required to:
A)make inquiries of the predecessor auditor.
B)tell the company whether or not the auditor is willing to issue a "clean" opinion.
C)prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan.
D)become a member of the entity's board of directors.

Question

Quizplus · Accepted Answer

Before accepting a new engagement, an auditor is required to make inquiries of the predecessor auditor to assess the reasons for the change in auditors, any issues encountered during the previous audit, and to determine if there are any factors that may affect the current audit. Choices B, C, and D are not mandatory requirements before accepting a new audit engagement.

Before Accepting an Engagement to Audit a New Entity, an Auditor