ICAEW ARF · Chapter 2 · Question 2 of 8
A prospective auditor asks a potential new client for permission to contact the existing auditor. The client refuses. What should the prospective auditor do?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Decline the appointment
Explanation
Professional clearance requires the prospective auditor to seek the client's permission to communicate with the existing auditor. A refusal without good reason suggests the client may be hiding something, so the prospective auditor should decline. Contacting the existing auditor without permission would breach confidentiality, and extra testing cannot replace the information sought.
More Obtaining and accepting an engagement MCQs
- Q4Which of the following would normally be included in an audit engagement letter?
- Q5Which of the following is a precondition for an audit?
- Q6Which of the following factors would most likely cause an audit firm to decline a new audit engagement?
- Q7Before accepting a new audit client, which of the following does the firm have to do under UK anti-money laundering requirements?
- Q8A prospective auditor receives a reply from the existing auditor, with the client's permission, saying that the directors have previously…