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Inquiry of the predecessor auditor is a necessary procedure and may inform the successor auditor of potential disagreements that existed between the client and predecessor auditor with respect to accounting principles, auditing procedures, facts that impact the integrity of management, or similarly significant matters.
Predecessor auditors may be asked to reissue their report on financial statements for a number of reasons, including requests made by a former client to include a predecessor auditors report in a registration statement filed with the SEC.
If a predecessor auditor declines to reissue his or her report on previously issued financial statements, a former client may decide to engage the successor auditor to audit the financial statements previously reported on (hereafter referred to as a reaudit) by the predecessor auditor.
Predecessor or successor accounts can be deleted using the STA screen or Form C-10.
Predecessor or successor account numbers can be changed.
If the predecessor account was closed without a transfer of compensation experience, and subsequently reopened, amending the records to reflect a proper transfer of compensation experience will invalidate the reopen.
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