ACCA Audit and Assurance (F8) Practice Exam

What should auditors ensure regarding outgoing auditors after accepting an appointment?

1. Their resignation is documented

2. That they are properly conducted

3. That they are replaced immediately

4. That they provide necessary information

The correct answer is: That they are properly conducted

When auditors accept an appointment, they must ensure that the outgoing auditors are properly conducted in the process of transitioning responsibilities. This entails verifying that the outgoing auditors have followed the appropriate legal and professional protocols during their departure, which includes adhering to ethical guidelines and confidentiality requirements. The proper conduct includes ensuring that there are no disputes or unresolved matters that could affect the audit integrity or the incoming auditor's ability to perform their duties effectively. This is critical to maintain trust and transparency in the audit process, as well as to safeguard the interests of the stakeholders involved. While other considerations may be relevant in the transition, including documentation of resignation and exchange of necessary information, the emphasis on proper conduct highlights the importance of ethical standards and professionalism that underpin the auditing profession. This ensures a smooth handover and supports the continuity and reliability of the audit engagement.