Academic journal article Journal of Accountancy

Predecessor/successor Communication Clarified

Academic journal article Journal of Accountancy

Predecessor/successor Communication Clarified

Article excerpt

The American Institute of CPAs auditing standards board has swept out Statement on Auditing Standards no. 7, Communications Between Predecessor and Successor Auditors, and replaced it with SAS no. 84, keeping the same title. For key provisions, see "New SAS on Passing the Baton," JofA, May 97, page 15.

SAS no. 7 task force chairman Stephen M. McEachern told the Journal about the key differences between the exposure draft and the final statement: The ASB added a time-cutoff footnote that says the SAS does not apply if there were no audits for the two fiscal periods immediately preceding the current one.

The final statement, like the ED, says a predecessor's working papers themselves are not evidential matter, but the results of a successor's review of those papers are. Nevertheless, McEachern said access to working papers was a contentious issue. "Some practitioners thought we were going a little far, but the ASB thought it was essential." However, he pointed out the new statement was flexible; practitioners can deny access to working papers. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.