The audit committee of the board of directors of Rebel Corporation asked Tish & Field, CPAs, to audit Rebel’s financial statements for the year ended December 31, 2015.
Tish & Field explained the need to make an inquiry of the predecessor auditor and requested permission to do so. Rebel’s management agreed and authorized the predecessor auditor to respond fully to Tish & Field’s inquiries.
a. What information should Tish & Field obtain during its inquiry of the predecessor auditor prior to accepting the engagement?
b. What additional audit procedures should Tish & Field perform in evaluating Rebel as a potential client?
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