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AICPA CPA-Auditing Exam - Topic 1 Question 120 Discussion

Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's:
B) Understanding as to the reasons for the change of auditors.
A) Opinion of any subsequent events occurring since the predecessor's audit report was issued.
C) Awareness of the consistency in the application of GAAP between periods.
D) Evaluation 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.

AICPA CPA-Auditing Exam - Topic 1 Question 120 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 120
Topic #: 1
[All CPA-Auditing Questions]

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

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Suggested Answer: B

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

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Nenita
2 months ago
C and D don't make sense either. The successor needs to evaluate GAAP consistency themselves.
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Sarah
2 months ago
I feel like A is misleading. The predecessor won't know about subsequent events.
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Ricarda
3 months ago
Agreed! It helps assess potential risks.
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Launa
3 months ago
I think B is the best choice. Understanding the reasons for the change is crucial.
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Lucina
3 months ago
Just learned about this! Seems like a crucial step before taking on an audit.
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Rory
3 months ago
I disagree, I think understanding GAAP consistency is important too.
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Chandra
3 months ago
Wait, so the predecessor doesn’t give opinions on subsequent events? That’s surprising!
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Casey
3 months ago
I thought it was A at first, but B makes more sense.
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Vicente
4 months ago
Choice B is definitely the right call!
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Merilyn
4 months ago
C is the wrong answer. The successor auditor, not the predecessor, is responsible for evaluating the consistency in the application of GAAP.
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Tammi
4 months ago
Haha, I bet the predecessor auditor is just glad to be done with this client! Probably doesn't want to share any juicy details.
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Fatima
5 months 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
5 months 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
5 months 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
5 months 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
5 months 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
5 months 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
6 months 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
6 months 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
6 months 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
6 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
6 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
7 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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Xuan
10 days ago
Exactly! It sets the stage for the new engagement.
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Pilar
15 days ago
Right? Understanding the reasons for the change is crucial.
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Julene
2 months ago
I agree, it's all about those key inquiries.
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