Zzzbest
ZZZZ Best Case Assignment #2
Question 1: 15 points
AU Section 315 Communications Between Predecessor and Successor Auditors .01-.13Using the facts from the ZZZZ Best case and professional guidance from AU Section 315, explain the following:
A. As the successor auditor, what was E&W supposed to do before they accepted ZZZZ Best as an audit client in regards to Greenspan? Summarize in enough detail AU 315.03-.06. In your answer give and support your opinion as to whether or not E&W violated these paragraphs and if you can prove it as a fact.
The first thing E&W should have done, as the successor auditor, was to postpone accepting the engagement until the communications in paragraphs .07 through .10 have been evaluated. (AU 315.03) It is the responsibility for the successor auditor to contact the predecessor auditor and hold any information exchanged about ZZZZ Best confidential (AU 315.06). It is important for the successor auditor to contact the predecessor auditor because they may be able to provide information that will assist the successor auditor in determining whether or not to accept an engagement. (AU 315.07) The successor auditor should request permission from the prospective client to make inquiry of the predecessor auditor prior to acceptance of the engagement. If the client refuses, the successor should inquire as to why the client is refusing (AU 315.08). The successor auditor should make inquiries regarding matters that will help the successor auditor determine if they were to accept the engagement and the predecessor auditor should respond promptly and fully. (AU 315.09 and AU 315.10)
In my opinion, E&W did violate the standards of what a successor auditor should do regarding the contacting of a predecessor auditor in the case of the ZZZ Best audit. I believe this to be true because Mr. Greenspan (predecessor auditor) testified before Congress that E&W never got in touch with him regarding the restoration contract and the
Question 1: 15 points
AU Section 315 Communications Between Predecessor and Successor Auditors .01-.13Using the facts from the ZZZZ Best case and professional guidance from AU Section 315, explain the following:
A. As the successor auditor, what was E&W supposed to do before they accepted ZZZZ Best as an audit client in regards to Greenspan? Summarize in enough detail AU 315.03-.06. In your answer give and support your opinion as to whether or not E&W violated these paragraphs and if you can prove it as a fact.
The first thing E&W should have done, as the successor auditor, was to postpone accepting the engagement until the communications in paragraphs .07 through .10 have been evaluated. (AU 315.03) It is the responsibility for the successor auditor to contact the predecessor auditor and hold any information exchanged about ZZZZ Best confidential (AU 315.06). It is important for the successor auditor to contact the predecessor auditor because they may be able to provide information that will assist the successor auditor in determining whether or not to accept an engagement. (AU 315.07) The successor auditor should request permission from the prospective client to make inquiry of the predecessor auditor prior to acceptance of the engagement. If the client refuses, the successor should inquire as to why the client is refusing (AU 315.08). The successor auditor should make inquiries regarding matters that will help the successor auditor determine if they were to accept the engagement and the predecessor auditor should respond promptly and fully. (AU 315.09 and AU 315.10)
In my opinion, E&W did violate the standards of what a successor auditor should do regarding the contacting of a predecessor auditor in the case of the ZZZ Best audit. I believe this to be true because Mr. Greenspan (predecessor auditor) testified before Congress that E&W never got in touch with him regarding the restoration contract and the