An auditor is planning the audit of a new client, a nonissuer. The auditor requests permission to contact the predecessor auditor. The client refuses to grant permission. What is the auditor's MOST appropriate response?

Answer options:

Proceed with the audit but assess control risk at maximum.

Contact the predecessor auditor anyway, as professional standards mandate communication.

Consider the implications of the refusal and potentially decline the engagement.

Issue a disclaimer of opinion in the initial audit report.

How to approach this question

Predecessor communication is CRITICAL for acceptance. If client says no, ask why. If no good reason, run away.

Full Answer

C.Consider the implications of the refusal and potentially decline the engagement.✓ Correct

Consider the implications of the refusal and potentially decline the engagement.

AU-C 210/220. The auditor must communicate with the predecessor to decide whether to accept. If the client refuses, it raises serious questions about management integrity. The auditor generally should not accept the engagement.

Common mistakes

Thinking you can contact the predecessor without permission.

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