AU Section 315
Communications Between Predecessor and Successor Auditors
(Supersedes SAS No. 7.) Source: SAS No. 84; SAS No. 93. Effective with respect to acceptance of an engagement after March 31, 1998, unless otherwise indicated.
.01 This section provides guidance on communications between predecessor and successor auditors when a change of auditors is in process or has taken place. It also provides communications guidance when possible misstatements are discovered in ﬁnancial statements reported on by a predecessor auditor. This section applies whenever an independent auditor is considering accepting an engagement to audit or reaudit (see paragraph .14 of this section) ﬁnancial statements in accordance with generally accepted auditing standards, and after such auditor has been appointed to perform such an engagement. .02 For the purposes of this section, the term predecessor auditor refers to an auditor who (a) has reported on the most recent audited ﬁnancial statements1 or was engaged to perform but did not complete an audit of the ﬁnancial statements2 and (b) has resigned, declined to stand for reappointment, or been notiﬁed that his or her services have been, or may be, terminated. The term successor auditor refers to an auditor who is considering accepting an engagement to audit ﬁnancial statements but has not communicated with the predecessor auditor as provided in paragraphs .07 through .10 and to an auditor who has accepted such an engagement. [As amended, effective for audits of ﬁnancial statements for periods ending on or after June 30, 2001, by Statement on Auditing Standards No. 93.]
Change of Auditors
.03 An auditor should not accept an engagement until the communications described in paragraphs .07 through .10 have been evaluated.3 However, an auditor may make a proposal for an audit engagement before communicating with the predecessor auditor. The...