ACCA AA · Chapter 2 · Question 6 of 10
What is the main purpose of a proposed auditor communicating with the outgoing auditor before accepting an audit appointment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) To find out whether there are any professional reasons why the appointment should not be accepted
Explanation
The communication, often called professional clearance, lets the proposed auditor learn of any matters such as disputes with management or suspected fraud that might affect the decision to accept. It does not replace the evidence needed for the current year audit, and fees are agreed with the client. Responsibility for the prior year opinion remains with the auditor who signed it.
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