Question

Assume the role of the predecessor auditor, and state what you would include in your communication with the successor auditor in the following independent situations.
a. You resigned from the audit because the client has not paid your fees for the previous year’s audit.
b. You resigned from the audit because of concerns about management’s integrity after discovering that many personal expenses of the senior managers had been improperly charged to the company’s account.
c. The client dismissed you as auditor over a disagreement about the amount of inventory that should be written down for obsolescence.
d. The client dismissed you because your audit report in the previous year was a “denial of opinion,” resulting from serious deficiencies in the company’s accounting records and internal controls.
e. For each of the situations in a to d above, assume instead that you are the successor auditor and have received the above communications from the predecessor auditor. What action would you take on receiving the communication in each case?



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  • CreatedJanuary 09, 2015
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