You have received a request form XYZ Ltd. to accept an appointment as their auditor for the financial year ending 31 December 2001.Required:State why it is important for an incoming auditor to hold consultations with the outgoing auditor

It is important for an incoming auditor to hold consultations with the outgoing auditor because: –
i) It is a matter of professional courtesy
ii) To enable him to obtain all the pertinent matters relevant to the audit from the outgoing auditors. This includes issues which would influence his decision as to whether or not to accept the appointment. The outgoing auditor will be able to provide information such as the reasons behind their removal as auditors of the company. Scuh information will be useful in deciding whether to accept the appointment or to decline.

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