The auditor should look the most recent financial statement and should ask for DOW’s permission in order to contact the pervious external auditor. (SAS No.122 AU-C 510 paragraphs .06 and.07) Another thing that the new auditor needs to prove is his independence in relation to DOW; the auditor needs to obtain relevant information proving he is not related in anyway to DOW or its clients. (SAS No.122 AU-C 220 paragraph .13(a)) The auditor has to determine if he wants to choose to accept and continue the engagement with DOW based on the documents he was given and the research he had done and the level of difficulty he is willing to accept while continuing his due professional care before he agrees to the audit. (SAS No.127 AU-C 600.25 paragraph .14) The agreement on audit engagement term is a document listing the scope of the audit, responsibilities of the auditor and the management and the limitation that might arise. (SAS No.122 AU-C 210 paragraph
The auditor should look the most recent financial statement and should ask for DOW’s permission in order to contact the pervious external auditor. (SAS No.122 AU-C 510 paragraphs .06 and.07) Another thing that the new auditor needs to prove is his independence in relation to DOW; the auditor needs to obtain relevant information proving he is not related in anyway to DOW or its clients. (SAS No.122 AU-C 220 paragraph .13(a)) The auditor has to determine if he wants to choose to accept and continue the engagement with DOW based on the documents he was given and the research he had done and the level of difficulty he is willing to accept while continuing his due professional care before he agrees to the audit. (SAS No.127 AU-C 600.25 paragraph .14) The agreement on audit engagement term is a document listing the scope of the audit, responsibilities of the auditor and the management and the limitation that might arise. (SAS No.122 AU-C 210 paragraph