Final answer:
A successor auditor requests review of the predecessor's audit working papers to understand the prior work and any issues that might affect the current audit. This includes reviewing the engagement letter for the terms of the previous engagement. It's a standard part of due diligence in the auditing process.
Step-by-step explanation:
A successor auditor should request the new client to authorize the predecessor auditor to allow a review of the predecessor's audit working papers. It is typical procedure for the successor to review the former auditor's work to obtain an understanding of the work performed and to assess any matters that may impact the successor's audit. The review may include the engagement letter to understand the terms of the previous engagement, any issues identified, and how those issues were addressed.
As part of due diligence and professional standards in auditing, this allows for a transparent handover and ensures that the successor auditor has the context and information necessary to perform a thorough audit. However, the information obtained from the review is subject to confidentiality and is used only for the purposes of planning and performing the audit.