AICPA CPA-Auditing Exam - Topic 1 Question 120 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 120
Topic #: 1

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's:

AOpinion of any subsequent events occurring since the predecessor's audit report was issued.

BUnderstanding as to the reasons for the change of auditors.

CAwareness of the consistency in the application of GAAP between periods.

DEvaluation of all matters of continuing accounting significance.
Explanation
Choice 'b' is correct. Before accepting an engagement, the auditor should make specific inquiries of the predecessor auditor in order to assist the auditor in deciding whether or not to accept the engagement.
Inquiry should include the predecessor's understanding of the reasons for the change in auditors.
Choice 'a' is incorrect. The predecessor generally does not provide an opinion on events occurring subsequent to the issuance of the audit report.
Choice 'c' is incorrect. The successor (and not the predecessor) evaluates the consistency in the application of GAAP. This evaluation occurs after acceptance.
Choice 'd' is incorrect. The predecessor generally allows the successor to review audit documentation related to matters of continuing accounting significance, but this occurs subsequent to acceptance.

Show Suggested Answer

Suggested Answer: B

by Willard at Jan 05, 2026, 05:16 AM

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Fatima

3 days ago

I agree with the explanation. The successor auditor needs to understand the reasons for the change in order to make an informed decision about accepting the engagement.

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Chun

8 days ago

Hmm, I'm not sure about this one. Shouldn't the successor auditor also inquire about the predecessor's opinion on subsequent events? That seems like important information to have.

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Alita

13 days ago

B is the correct answer. The predecessor auditor's understanding of the reasons for the change in auditors is crucial for the successor to consider before accepting the engagement.

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Laurel

18 days ago

I thought the predecessor might have some input on GAAP consistency, but now I see that it’s the successor’s job to evaluate that after they accept the engagement.

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Lashawn

24 days ago

I think we practiced a question similar to this one, and I remember that the predecessor's reasons for the change were highlighted as a key point.

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Basilia

29 days ago

I’m a bit unsure about the specifics of what the predecessor can provide. I thought they might give insights on subsequent events too, but I guess that’s not the case?

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Alex

1 month ago

I remember we discussed the importance of understanding why the previous auditor was changed. It seems like that’s crucial for deciding whether to take on the engagement.

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Dana

1 month ago

I'm feeling pretty confident about this one. The successor auditor needs to make inquiries of the predecessor to understand the reasons for the change in auditors, which is choice B. The other options are not the correct focus for the successor auditor at this stage of the engagement.

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Paris

1 month ago

This question is testing our knowledge of the audit process and the responsibilities of the successor auditor. I think the best approach is to carefully read through the answer choices and think about which one aligns with the guidance we've covered in class.

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Carrol

2 months ago

Okay, I've got this. The key inquiry the successor auditor should make is about the predecessor's understanding of the reasons for the change in auditors. That's the correct answer choice B. The other options are distractors, so I'll be sure to double-check that I have the right one.

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Almeta

2 months ago

Hmm, I'm a little unsure about this one. I know the successor auditor needs to make some specific inquiries of the predecessor, but I can't quite remember all the details. I'll have to review my notes on this topic.

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Lynda

2 months ago

This seems like a pretty straightforward question about the responsibilities of a successor auditor when taking on a new engagement. I think I'll focus on understanding the key inquiries the successor should make of the predecessor.

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