ZZZZ Best Case:
1. According to the Public Company Accounting Oversight Board (PCAOB) AS 2610 .09 and .03 successors have the responsibility to obtain information regarding a new audit client from the clients' previous auditor however, auditors may submit a proposal to conduct an audit engagement before this condition is fulfilled. The purpose for this communication is to ensure that the new auditor can interpret the trustworthiness and integrity of the proposed client. Information that might affect the integrity of management, previous disagreements with past auditors, communication regarding internal controls and fraud with authorities, reason for changing auditors, and the predecessors understanding of the company and any unusual transactions by the entity are five qualifications the new auditor should request information about from the predecessor according to PCOAB AS 2610 .09. Subsequently, PCOAB AS 2610 .08 sates that the client ought to give consent to their past auditor to release certain confidential information to the new auditor, if the client refuses to consent the new auditor should highly consider not accepting the audit engagement. Finally, the predecessor has an obligation to disclose information requested by the successor based on facts…show more content… When reviewing E&W's decision to sign a confidentially agreement with ZZZZ Best the biggest question we face is why would they agree to sign such an agreement. The only motive E&W would have to sign this agreement in my opinion is E&W did not want to lose ZZZZ Best as a client. However, this agreement was counter-productive in regard to conducting the audit engagement with ZZZZ Best's financials. If I were the auditing ZZZZ Best I would issue disclaimer of opinion due to this confidentially agreement. I would not be able to reasonably ensure that ZZZZ Bests financials were free of material errors. The confidentially agreement would restrict my access to vital information needed to conduct an audit