Page 48 - AA Integrated Workbook STUDENT 2018-19

Chapter 4

2.2 Professional clearance
If offered an audit role, the prospective audit firm must:

 Ask the client for permission to contact the existing auditor (and refuse the
engagement if the client refuses).

 Contact the outgoing auditor, asking for all information relevant to the decision
whether or not to accept appointment (e.g. overdue fees, disagreements with
management, breaches of laws & regulations, doubt over management
integrity).

 The existing auditor must ask the client for permission to respond to the
prospective auditor.

 If the client refuses permission, the existing auditor should notify the prospective
auditor of this fact.

 If a reply is not received, the prospective auditor should try and contact the
outgoing auditor by other means e.g. by telephone.

 If a reply is still not received, the prospective auditor may still choose to accept
but must proceed with care.

 If a reply is received, consider the outgoing firm's response and assess if there
are any ethical or professional reasons why they should not accept
appointment.

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