Your firm has been contacted by the president of Lyrac
Your firm has been contacted by the president of Lyrac Inc. about becoming the company’s auditor. Lyrac was audited last year by PA Diggs and, while generally pleased with the services provided by Diggs, the president of Lyrac thinks the audit work was too detailed and interfered excessively with normal office routines. You have asked Lyrac’s president to inform Diggs of the decision to change auditors, but he does not wish to do so.

Required:
List and discuss the steps to follow in dealing with a predecessor auditor and a new audit client before accepting the engagement.

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