Before accepting the engagement, the new auditor communicates with the predecessor to learn of any professional reasons not to accept, and may review the predecessor's working papers for opening balances.
Source: BDS 510, Etik Kurallar
Related terms
Opening balancesAccount balances existing at the beginning of the audited period, based on the prior period's closing balances; they are additionally verified in first-year audits.Auditor rotationThe requirement, designed to protect auditor independence, for a company to be audited by another auditor or audit firm after a certain period.Client acceptance and continuanceThe process in which an audit firm assesses integrity, independence, competence and resources before accepting a new client or continuing an existing relationship.Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: November 8, 2026 · This definition is for general information only.