If a prospective new audit client does not allow the auditor to contact its existing auditor. If a reply is still not received the prospective auditor may still choose to accept but must proceed with care. if a prospective new audit client does not allow the auditor to contact its existing auditor: One of the elements necessary to recover damages if there has been a material misstatement in a registration statement filed pursuant to the Securities Act of 1933 is that: Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor: a) the auditor should contact the existing auditor anyway because it is the auditor's duty. Establishing the client's reason for audit. If the client won’t give you permission to speak with the old auditor, your firm may not want to accept the engagement. b) the auditor should contact the existing auditor anyway because it is their duty. The successor auditors need not contact the predecessors A. 1 day ago · Study with Quizlet and memorize flashcards containing terms like Which statement is correct relating to a potential successor auditor's responsibility for communicating with the predecessor auditors in connection with a prospective new audit client? A. (a) The auditor should refuse to take on the prospective new client. 3. docx from MC 03 at Emporia State University. If a prospective new audit client does not allow the auditor to contact its existing auditor: a. If your potential client’s most recently audited financial statements are more than two years old, it’s not mandatory per SAS No. the auditor should consider that a negative factor on the integrity of client management. and more. (LO 1) If a prospective new audit client does not allow the auditor to contact its existing Study with Quizlet and memorize flashcards containing terms like 6) Which of the following situations would be most likely to cause a CPA to not accept a new audit engagement? A) The prospective client has fired its prior auditor. What is the impact on substantive testing sample size if all other factors remain constant?, As the acceptable level of detection risk increases, an auditor may change the, If a prospective new audit client does not allow the auditor to contact its existing Apr 5, 2019 · If a prospective new audit client does not allow the auditor to contact its existing auditor: (a) the auditor should contact the existing auditor anyway because it is their duty. the auditor should respect the prospective client’s right to privacy. , If a prospective new audit client does not allow the auditor to contact its existing auditor: a. If the client does not allow the new auditor to contact the predecessor auditor, it should not impact client acceptance. B) The CPA lacks a thorough understanding of the prospective client's operations and industry. B. The predecessor auditor may wish to request a consent and acknowledgment letter from the client to document this author Study with Quizlet and memorize flashcards containing terms like In a financial audit, inherent risk is evaluated to help an auditor assess which of the following?, An engagement letter should ordinarily include information on the objectives of the engagement and, If a prospective new audit client does now allow the auditor to contact its existing auditor and more. Ultimately this allows for audit reports to be customized for individual entities. d. , Before accepting an engagement to audit a new client, an auditor is required to: A) make inquiries of the predecessor auditor after obtaining the consent of the prospective client. A prospective auditor can make a proposal to do the audit before contacting the predecessor auditor, but contact the outgoing auditor, asking for any reasons why they should not accept appointment. Ability to establish Study with Quizlet and memorize flashcards containing terms like Auditors gather information through communication with individuals internal and external to the prospective client. Question: If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should respect the prospective client's right to privacy. The learning outcomes include the explanation of matters that should be considered and procedures that should be followed by a firm before accepting a new client, a new engagement for an existing client, or agreeing the terms of any new Study with Quizlet and memorize flashcards containing terms like 5-1 Which of the following procedures does not belong to the preplan phase of an audit engagement? a. c. If the potential client does not permit this communication, think twice about doing this audit. 3. 24 1. the existing auditor should contact the new If a prospective new audit client does not allow the auditor to contact its existing auditor: a) the auditor should consider that a negative factor on the integrity of client management. C) help the client by facilitating the change of auditors Sets out the terms of the audit engagement, to avoid any misunderstandings between the auditor and the client Risk Assessment Phase Gaining an understanding of the client, identifying risk fates, developing an audit strategy and setting planning materiality 1) If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should consider that a negative factor on the integrity of client management. Which of the following would be internal to the client?, The new auditor should communicate with the previous auditor in order to _______. Study with Quizlet and memorize flashcards containing terms like As a result of control testing, a CPA has decided to reduce control risk. 11 The successor auditor should request that the client authorize the pre-decessor auditor to allow a review of the predecessor auditor's working papers. F. If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should consider that a negative factor on the integrity of client management. 11 of this section states, "The successor auditor should request that the client authorize the predecessor auditor to allow a review of the predecessor auditor's working papers. The auditor should respect the prospective client's right to privacy. Jun 20, 2021 · a. , In assessing whether to accept a client for an audit engagement, a CPA should consider A. Chapter 3 MC ACCT 5125W (002) 1. get all the passwords and logins to the client software B. Establishing contact with the preceding auditor. the existing auditor should contact the new auditor to tell them all about the client. Establishing the management's assertion. 5. the existing auditor should contact the new auditor to tell them all about the client b. 1 / 60. the auditor should consider that a negative factor on the integrity of client management c. View Test prep - auditing 3. 84 replaces SAS no. If permission is withheld, the existing auditor should inform the prospective auditor, who should decline the appointment. Study with Quizlet and memorize flashcards containing terms like 14. -identification of factors that may affect the risk of a material misstatement in the financial Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor: a. C) The CPA is unable to review the predecessor auditor's working Study with Quizlet and memorize flashcards containing terms like Materiality is based only on a quantitative analysis of the financial statements. the auditor should refuse to take on the prospective new client c. if a prospective new order client does not allow the auditor to contact its existing auditor: Select one: a. the auditor should consider refusing to take on the prospective new client. by telephone. The predecessor auditor may wish to request a consent and acknowledgment letter from the client to document this authorization in an effort to reduce mis- Mar 28, 2024 · Depending on the nature of the audit client/auditee relationship and the purpose of the audit, the audit client may Require the auditee to implement corrective actions to address the audit findings or take steps as appropriate t0 resolve the findings if no corrective action is required [The following matter subject to inquiry is effective for audits of fiscal years beginning on or after December 15, 2014. , 5-2 What is the responsibility of a successor View MC 03. 315 require the auditor to make inquiries regarding the predecessor auditor's understanding of the company's relationships and transactions with related parties and D) Management fails to modify prescribed controls for changes in conditions. This is because, per professional standards and ethical guidelines, auditors should conduct a communication with the predecessor auditor as part of the client acceptance Study with Quizlet and memorize flashcards containing terms like As a result of control testing, a CPA has decided to reduce control risk. REVISED DEFINITIONS OF predecessor and successor auditors reflect todays current proposal environment KEY POINTS OF THE NEW SAS include required communications and the need to evaluate these fees owed to the predecessor auditor are not of themselves grounds for declining. , If a prospective new audit client does not allow the auditor to contact its existing auditor: A. - the auditor should consider that a negative factor concerning the integrity of client management. An example of an incentive or pressure that increases the risk of fraud is: Study with Quizlet and memorize flashcards containing terms like When gaining an understanding of the client, the auditor will consider:, If a prospective new audit client does not allow the auditor to contact its existing auditor:, A key aspect of the "concern for the public interest" definition of a professional is: and more. Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor:, The risk assessment phase of an audit does NOT include:, Which of the following is an example of a qualitative factor of materiality and more. , If a company refuses permission to contact its previous audit firm, what Appendix A - Illustrative Client Consent and Acknowledgment Letter. b) the auditor should refuse to take on the prospective new client. The independence requirement is met if the auditor does not own shares of the client. g. , The Code of Professional Conduct does not allow an auditor to disclose confidential client information without the client's consent. Nov 17, 2022 · KAMs allow the auditor to disclose the most important things identified in the audit and note them on the face of the report. Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. the auditor should respect the prospective client's right to privacy. the existing auditor should contact the new auditor to tell If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should contact the existing auditor anyway because it is their duty. get the previous auditor's work papers, If a company refuses permission to contact its previous audit firm, what should the new auditor do? A. 3) The existing auditor should contact the new auditor to tell them all about the client. Jan 23, 2022 · View Chapter 3 MC. the auditor should contact the existing auditor anyway because it is their duty b. 2) Consider it a negative factor on the integrity of client management. It is important to note that an auditor can only disclose KAMs when specifically engaged to do so. The successor auditors have no responsibility to contact the predecessor auditors. Establishing contract with the client. 7 with new guidance on communications between predecessor auditors and successor auditors. - the existing auditor should contact the new Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor: a. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the A. (c) the existing auditor should contact the new auditor to tell them all about the client. The release adopting this provision, PCAOB Release No. Paragraph . the auditor should contact the existing auditor anyway because it is their duty. the auditor should respect the prospective clients right to privacy d. the auditor should respect the prospective If a prospective new audit client does not allow the auditor to contact its existing auditor Your solution’s ready to go! Our expert help has broken down your problem into an easy-to-learn solution you can count on. B) obtain the prospective client's signature to the engagement letter. . the existing auditor should contact the new auditor to tell D. Once the client signs the engagement letter, the client cannot sue the auditor. 2014-002, states that "[t]he amendments to AU sec. c) the existing auditor should contact the new auditor to tell them all about the client. Timing of substantive tests from year end to an interim date. The current financial health of the prospective Study with Quizlet and memorize flashcards containing terms like True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to continue with an existing client. Study with Quizlet and memorize flashcards containing terms like ) If a prospective new audit client does not allow the auditor to contact its existing auditor:, The risk assessment phase of an audit does not include: -gaining an understanding of the client. If a prospective new audit client does not allow the auditor to contact its existing auditor: b. Adequacy of the preplanned audit program. the existing auditor should contact the new auditor to If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should contact the existing auditor anyway because it is their duty. the existing D. E. Relevant to ACCA Qualification Paper P7 The syllabus for Paper P7, Advanced Audit and Assurance includes Professional Appointments (syllabus reference C4). b) the auditor should consider that a negative factor concerning the integrity of client management. docx from AUDITING 3 at APU Japan. docx from ACCT 5125 at University of Notre Dame. The auditor should not contact the existing auditor without the prospective client's permission. (b) the auditor should consider refusing to take on the prospective new client. the auditor should contact the existing auditor anyway Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor:, The risk assessment phase of an audit does not include:, Which of the following is an example of a qualitative factor of materiality? and more. Before establishing contact, the company’s management must authorize the predecessor auditor to respond to the successor auditor’s inquiries. 1. , Before accepting an engagement to audit a new client, a CPA is required to obtain:, The audit client's board of directors and audit committee refused to take any action with respect to an immaterial illegal act which was brought to their attention Nov 15, 2023 · Principles of Accounting Volume 1: Financial Accounting Mitchell Franklin, Patty Graybeal, Dixon Cooper 1st Edition 3 days ago · Study with Quizlet and memorize flashcards containing terms like The purpose of the requirement in having communication between the predecessor and successor auditors is to: A) allow the predecessor to disclose information which would otherwise be confidential. Contact 1. 84 to contact the previous auditor when researching your potential client. Assessed level of control risk from below the maximum to the maximum level. Communication received from D. , When an auditor is asked to accept a new client, ______. Study with Quizlet and memorize flashcards containing terms like The first phase of audit planning is risk assessment. , An auditor may not accept a prospective client because the ______. CH 03 Multiple-Choice Questions - CH 3 1. 2. c) the existing auditor should contact the Feb 16, 2024 · If a prospective new order client does not allow the auditor to contact its existing auditor, the correct course of action is refuse to take on the prospective new client. Feb 2, 2022 · If a prospective new audit client does not allow the auditor to contact its existing auditor: a. b. 4. Selected Answer: Correct The auditor should refuse to take on the new client The auditor should contact the existing auditor anyway The auditor should refuse to take on the new client The existing auditor should contact the new audited tell them about the client The auditor should respect the new clients right to privacy Correct If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should consider that a negative factor on the integrity of client management. What is the impact on substantive testing sample size if all other factors remain constant?, As the acceptable level of detection risk increases, an auditor may change the, If a prospective new audit client does not allow the auditor to contact its If a prospective new audit client does not allow the auditor to contact its existing auditor, a) the auditor should contact the existing auditor anyway because it is the duty. Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor:, The risk assessment phase of an audit does not include:, Which of the following is an example of a qualitative materiality factor? and more. EXECUTIVE SUMMARY STATEMENT ON AUDITING STANDARDS no. Assurance provided by tests of controls by using a larger sample size than planned. serve them with an official change of auditor notice D. The existing auditor must obtain the client's permission to give information to the prospective auditor. Chapter 3 - MC, R, P. What Auditors Do Not Do Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client's management and principals, 2) presence of circumstances pointing towards unusual risks in the engagement or requiring special attention . Jun 25, 2021 · d. d) the auditor should respect the Ch. B) help the successor auditor to evaluate whether to accept the engagement. If a reply is not received, the prospective auditor should try and contact the outgoing auditor by other means e. 0 (4 reviews) Get a hint. the auditor should consider refusing to take on the prospective new If a prospective new audit client does not allow the auditor to contact its existing auditor: (d) The existing auditor should contact the new auditor to tell them all about the client. If a prospective new audit client does not allow the auditor to contact its existing auditor: the auditor should consider that a Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor:, The risk assessment phase of an audit does not include:, Which of the following is an example of a qualitative materiality factor? and more. -audit execution and reporting. gain an understanding about the reasons for the change of auditors C. the auditor should consider that a negative factor on the integrity of client management . Study with Quizlet and memorize flashcards containing terms like If a prospective new audit client does not allow the auditor to contact its existing auditor: - the auditor should contact the existing auditor anyway because it is the auditor's duty. 10 Ifaprospective new audit client does not allow the auditor to contact its existing auditor: (d) the existing auditor should contact the new auditor to tell them all about the client. If a prospective new audit client does not allow the auditor to contact its existing auditor, what should the auditor do? 1) Contact the existing auditor anyway because it is their duty.