Existing Auditor

ACCA F8考試：Existing Auditor

1 Response

Ensure that the client's permission to discuss affairs fully with the prospective auditor has been obtained. In some jurisdictions, there may be a legal requirement to reply, even if the client's permission has not been given.

The existing auditor should answer without delay, stating:

that the client's permission has not been given for communication;

that there are no matters of which the prospective auditor should be aware; or

those factors of which the prospective auditor should be aware.

If the existing auditor is approached by a prospective auditor without first being notified of this by his client, the existing auditor should notify the client and decline to provide the prospective auditor with any information other than stating the reason why (i.e. client has not given them permission).

2 Transfer of Books and Papers

The former auditor should transfer the client's books and papers promptly to the successor auditor or to the client.

Any completed documents which are the subject of the engagement (e.g. financial statements, tax returns, etc) must be transferred to the client.

Working papers and drafts prepared by the auditor belong to the auditor.

3 Transfer Information

The former auditor should provide the new auditor with all "reasonable transfer information" (lack of which might prejudice the client's interest) promptly. No charge should be made unless a significant amount of work is involved.

"Transfer information" is defined as:

a copy of the last set of accounts formally approved by the client; and

a detailed trial balance that is in agreement with the accounts.

4 Review of Working Papers

In most jurisdictions, clients and the successor auditor have no right to demand access to documents and working papers that belong to the previous auditor.

However, it is not uncommon as part of the transfer of information for the previous auditor to allow a new auditor to review some or all of his working papers. This assists the new auditor, for example, in assessing the reliability of opening balances.