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SAS
No. 17 Communication between Successor and Predecessor
Auditors |
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 Status |
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Issued by Auditing Standards Committee in Taiwan on
1
May, 1989. |
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Summary |
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The initiative for communicating rests with the successor auditor.
The communication may be either written or oral. Both the
predecessor and successor auditors should hold in confidence
information obtained from each other. This obligation applies
whether or not the successor auditor accepts the engagement. |
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The successor auditor should request permission from the prospective
client to make an inquiry of the predecessor auditor prior to final
acceptance of the engagement. The successor auditor should ask the
prospective client to authorize the predecessor auditor to respond
fully to the successor auditor's inquiries. If a prospective client
refuses to permit the predecessor auditor to respond or limits the
response, the successor auditor should inquire as to the reasons and
consider the implications of that refusal in deciding whether to
accept the engagement. |
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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—
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Information that might bear on the integrity of management.
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Disagreements with management as to accounting principles,
auditing procedures, or other similarly significant matters.
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The predecessor auditor's understanding as to the reasons for
the change of auditors. |
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The predecessor auditor should respond promptly and fully, on the
basis of known facts, to the successor auditor's reasonable
inquiries. However, should the predecessor auditor decide, due to
unusual circumstances such as impending, threatened, or potential
litigation; disciplinary proceedings; or other unusual
circumstances, not to respond fully to the inquiries, the
predecessor auditor should clearly state that the response is
limited. If the successor auditor receives a limited response, its
implications should be considered in deciding whether to accept the
engagement. |
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The successor auditor should request that the client authorize the
predecessor auditor to allow a review of the predecessor auditor's
working papers. The predecessor auditor should determine which
working papers are to be made available for review and which may be
copied, such as the working paper analysis of balance sheet
accounts, and those relating to contingencies. |
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 Effective
date
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This Statement is effective for audit of financial statements where
the successor auditor is engaged on or after
1
July, 1989. |
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