Auditing and Attestation - Certified Public Accountant (CPA) Practice Exam 2025 - Free CPA Practice Questions and Study Guide

Inquiring about the communication of significant deficiencies in internal control is crucial for a successor auditor for several reasons. First, understanding any identified significant deficiencies helps the successor auditor assess the overall control environment of the client. This insight is critical for evaluating the risk of material misstatement and determining the nature, timing, and extent of audit procedures that need to be performed.

The predecessor auditor can provide valuable context regarding any issues faced by the client in the past, including how these deficiencies were addressed or mitigated. Additionally, knowing the history of internal control deficiencies allows the successor auditor to establish whether those issues are still present and whether they could affect the current audit.

Moreover, the successor auditor must ensure that they are effectively communicating their own findings and approaches to address these deficiencies in the context of the client’s ongoing operations. Therefore, this inquiry is fundamental in establishing a clear understanding of both the risks involved and the necessary audit strategies to appropriately address those risks in the current audit cycle.