Successor auditor definition
/What is a Successor Auditor?
A successor auditor is the outside auditor of an organization that replaces the predecessor auditor. Thus, the successor auditor conducts the audit for the current year when there was a predecessor auditor in the immediately preceding year. The successor auditor might have been hired because the predecessor was fired, or because the client is required by law to change auditors periodically. The successor auditor will need to review the working papers prepared by the predecessor auditor as part of its planning for the current-year audit. This must be done in order to gain a sufficient understanding of the client’s operations and processes.
The successor auditor must obtain the permission of the client before discussing audit issues with the predecessor auditor. When this permission is not given, it is a red flag that the predecessor auditor may have encountered problems with the books of the client.