Communications Between Predecessor and Successor Accountants - aicpa 2025

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The purpose of the requirement in having communication between the predecessor and successor auditors is to: allow the predecessor to disclose information which would otherwise be confidential. help the successor auditor to evaluate whether to accept the engagement.
Textbook Expert-Verified. The correct answer is B, stating that the successor auditor should request permission from the prospective client before contacting the predecessor auditor.
The term predecessor auditor refers to an auditor who has resigned or who has been notified that his services have been terminated. The term successor auditor refers to an auditor who has accepted an engagement or an auditor who has been invited to make a proposal for an engagement.
07 Inquiry of the predecessor auditor is a necessary procedure because the predecessor auditor may be able to provide information that will assist the successor auditor in determining whether to accept the engagement.
Explanation: The correct statement with regard to the predecessor-successor communications is that the successor auditor should obtain permission from the entity before contacting the predecessor auditor. This is to adhere to the professional courtesy and confidentiality requirements of the auditing profession.
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The correct answer is B, stating that the successor auditor should request permission from the prospective client before contacting the predecessor auditor. This ensures that confidentiality is maintained and allows the successor to gather necessary information about the clients audit history.
The successor auditor should request permission from the prospective client to make an inquiry of the predecessor auditor prior to final acceptance of the engagement.

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