Final answer:
The predecessor auditor can provide valuable information to the successor auditor, assisting in determining the reliability of the client's financial statements.
Step-by-step explanation:
When approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining whether the financial statements of the client are reliable.
By contacting the predecessor auditor, the CPA can gain insights into the client's accounting policies, key risks, and areas of concern. The predecessor auditor may also share their assessment of the client's internal controls and any audit procedures performed.
This information is valuable to the successor auditor as it helps in assessing the risks associated with the engagement and designing an effective audit plan.