If a prospective new audit client does not allow the auditor to contact its existing auditor:
Understand the Problem
The question is addressing the ethical considerations an auditor should take into account when a prospective new audit client refuses to allow the auditor to contact the existing auditor. It presents various options regarding how the auditor should proceed.
Answer
The auditor should consider that a negative factor concerning the integrity of client management.
The auditor should consider that a negative factor concerning the integrity of client management.
Answer for screen readers
The auditor should consider that a negative factor concerning the integrity of client management.
More Information
Refusing contact between the auditors might indicate issues with client transparency or management integrity. This is a key consideration for accepting the engagement.
Tips
A common mistake is to respect the client's privacy without considering the implications for the audit engagement.
Sources
- PCAOB Auditing Standards - pcaobus.org
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