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Glossary/Engagements and reports

Predecessor and successor auditor

The predecessor auditor is the one being replaced and the successor is the incoming auditor, who communicates with the predecessor before accepting an engagement and may review its workpapers with permission.

CORAA TeamUpdated November 5, 2026

Definition

The predecessor auditor previously audited the entity. The successor auditor is evaluating or has accepted the engagement. AU-C 210 expects the successor to request permission from the prospective client to contact the predecessor before acceptance, then to make inquiries about management's integrity, disagreements, fraud, and the reasons for the change. Confidentiality means the predecessor needs the client's consent to respond.

Why it matters in an audit or review

Inquiries help the successor judge client acceptance risk. If the client will not consent, the successor considers the implications and whether to proceed. After acceptance, AU-C 510 allows the successor to review the predecessor's workpapers, with the predecessor's cooperation, as one source of evidence on opening balances. The successor does not use the predecessor's work as part of the basis for its own opinion. If the predecessor audited the prior period and its report is not reissued, the successor's report refers to that audit in an other-matter paragraph.

Example

Illustrative: a prospective client changes firms after a dispute over a revenue adjustment. The successor, with consent, asks the predecessor about disagreements and learns of the adjustment, then adds revenue to its planning risk assessment.

Common mistakes

Skipping communication because the client says the prior firm was 'fine'.

FAQ

Can the successor review the predecessor's workpapers?

Often yes, with the predecessor's agreement. The predecessor chooses whether to allow access, usually after receiving a request and client consent.

Sources

  • AICPA, AU-C Section 210, Terms of Engagement (communication with the predecessor before acceptance)
  • AICPA, AU-C Section 510, Opening Balances — Initial Audit Engagements, Including Reaudit Engagements
  • AICPA, AU-C Section 710, Comparative Information — Corresponding Figures and Comparative Financial Statements
  • AICPA, Code of Professional Conduct, ET 1.700.001 (confidential client information)

Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error

Standards

AU-C 210AU-C 510

Related terms

  • First-year audit (initial engagement)
    A first-year audit is an initial engagement where the auditor must also obtain evidence that opening balances do not contain material misstatements and that accounting policies were applied consistently.
  • Engagement letter
    An engagement letter is the written agreement between the firm and the client that sets the engagement's objective, scope, management's responsibilities, reporting, and fees, as AU-C 210 requires for audits.
  • Independent auditor's report
    The independent auditor's report is the signed document in which the auditor states an opinion on the financial statements, with sections for the opinion, basis for opinion, and each party's responsibilities.

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