Final answer:
The successor auditor should ask the client to authorize the predecessor auditor to allow a review of both the engagement letter and audit working papers. This practice helps the successor understand the financial history, previous issues, and audit methodologies used by the predecessor.
Step-by-step explanation:
In the context of auditing, when a company hires a successor auditor, it is common practice for the successor to request permission to review the predecessor auditor's work. This is important for several reasons, including understanding the financial history of the company, any issues that were noted by the previous auditor, and the audit methodologies used. Specifically, the successor auditor should request the new client to authorize the predecessor auditor to allow a review of their audit working papers. These working papers provide detailed records of the evidence gathered, procedures performed, and the conclusions reached by the predecessor auditor during the previous audit period.
The engagement letter, which outlines the scope and terms of the audit engagement, can also be useful for the successor to understand the agreement details between the client and the predecessor auditor. It is not typical to review the engagement letter without the working papers or vice versa as both provide valuable context.
Therefore, the correct answer is that the successor auditor should request authorization for a review of both the predecessor auditor's engagement letter and audit working papers. Having access to these documents enables the successor to perform a more efficient and informed audit.