You have been proposed as auditor of a company. What is the first step that you should take?
Correct answer: D. Obtain the client's permission to communicate with the existing auditor
- A. Obtain a copy of the existing auditor's letter of engagement Hire An Accountant
- B. Obtain the existing auditor's working papers
- C. Obtain a copy of the company's most recent board minutes
- D. Obtain the client's permission to communicate with the existing auditor
Explanation
Before accepting a new audit, the proposed auditor should obtain the client's permission to communicate with the existing auditor and seek relevant professional information. Contact should not be made without the client's authorization.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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