When the prospective client has previously been audited, auditing standards require that the successor auditor make certain inquiries of the predecessor auditor before accepting the engagement.

Question

Quizplus · Accepted Answer

According to auditing standards, the successor auditor is required to make certain inquiries of the predecessor auditor before accepting the engagement when the prospective client has been audited previously. This is to gain a better understanding of potential risks, issues or problems that may have arisen in the previous audit and to assess the suitability of accepting the engagement. Therefore, the statement is true.

When the Prospective Client Has Previously Been Audited, Auditing Standards