Inherenet Limitations in Auditing: ZZZZ Best Company, Inc Essay
Summarize the information successor auditor should obtain: The successor auditor should make specific and reasonable inquiries of the predecessor auditor regarding matters that will assist the successor auditor in determining whether to accept the engagement.
Matters subject to inquiry should include— • Information that might bear on the integrity of management. • Disagreements with management as to accounting principles, auditing procedures, or other similarly significant matters. • Communications to audit committees or others with equivalent authority and responsibility regarding fraud, illegal acts by clients, and internal-control-related matters. • The predecessor auditor's understanding as to the reasons for the change of auditors.
The successor auditor may wish to consider other reasonable inquiries.
Q5 ZZZZ Best use the confidential letter to limit the auditor from disclosing the location of building or any other information with respect to the project or the building, to any third parties or to any other members or employees of audit firm. Auditors were not allowed to make any follow-up telephone calls to any contractors, insurance companies, the building owner, or other individuals