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What if client refuses to give the new auditor permission to send letter? Do we decline audit work?
Also, if previous auditors response indicates questionable client integrity/overdue fees – do we decline the audit?
Thanks
1 – YES – as it states in the notes (page 46) “If permission is not given, the appointment should be declined.”
2 – not “automatically” – the specifics of the circumstances would have to be evaluated. If the “questionable client integrity” means that the preconditions for an audit are not met (page 47) – it must be declined.
A proposed auditor is not expected to refuse to act merely on the grounds of unpaid fees owing to the existing auditor.
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