A CPA is conducting the first audit of a
client’s financial statements. The CPA hopes
to reduce the audit work by consulting with
the predecessor auditor and reviewing the
predecessor's working papers. This
procedure is
a. Acceptable if the CPA refers in the audit
report to reliance upon the predecessor
auditor's work.
b. Required if the CPA is to render an
unqualified opinion.
c. Unacceptable because the CPA should
bring an independent viewpoint to a new
engagement.
d. Acceptable if the client and the
predecessor auditor agree to it.
client’s financial statements. The CPA hopes
to reduce the audit work by consulting with
the predecessor auditor and reviewing the
predecessor's working papers. This
procedure is
a. Acceptable if the CPA refers in the audit
report to reliance upon the predecessor
auditor's work.
b. Required if the CPA is to render an
unqualified opinion.
c. Unacceptable because the CPA should
bring an independent viewpoint to a new
engagement.
d. Acceptable if the client and the
predecessor auditor agree to it.