Abstract:

Globalization, technological improvements, juristic regulations, economic and political policies, diversifications in management perceptions have affected business functions as well as business environment. The said changes in business environment caused operations and structure of auditing profession also to change. Consequently, a reviewing of the relations between auditor and client, and between predecessor and successor auditors became necessary. As a firm changes it’s auditor, old and new auditors of that firm have to communicate with each other. SAS (Statement on Auditing Standards) No. 84, SAS No. 93 and other Practice Alerts are formed to coordinate these communications. Before accepting an engagement, successor auditor must review working papers and reports of predecessor auditor in order to make a decision about the engagement. Reviewing of predecessor’s working papers by the successor, affects the timing, extent and structure of procedures as to the opening balances and compatibility to the accounting principles. It’s the successor’s responsibility to determine the timing, extent and structure of the audit work, and to inform both sides as to the consequences of reviews. In this paper, it is attempted to determine the cores of communication between predecessor and successor auditors based on SAS No. 84. First, regulations as to the said communication are detected and some related concepts are revealed. Later, initiating and conducting of such communications are argued. Furthermore, practical studies in literature as to the subject are reviewed.

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