Question

True or False

1. Before accepting an engagement, the possible successor auditors should ask the predecessor auditors questions about the integrity of management, disagreements with management, and the reasons for the change in auditors.

Answer 1

QUESTION

Before accepting an engagement, the possible successor auditors should ask the predecessor auditors questions about the integrity of management, disagreements with management, and the reasons for the change in auditors.

This statement is True

REASON

The successor auditor should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining whether to accept the engagement or not

Matters subject to inquiry should include :

• Information that might bear on the integrity of management
• Disagreements with management as to accounting principles, auditing procedures or other similarly significant matters
• Understanding as to the reason for the change of auditor

Above inquiries from predecessor auditor will assist the successor auditor in determining whether to accept the engagement or not