Communications between Prospective auditors and Predecessor. Consider that Smith & Smith CPAs audited Apollo shoes. Inc last year Now CEO Larry Lancaster wishes to engage Anderson, Olds, and Watershed, CPAs (HOW) to audit its annual financial statements. Lancaster is usually pleased with the services provided by Smith & Smith, but he thinks the audit work was too detailed and interfered excessively with norla office routines. AOW has asked Lancaster to inform Smith and Smith of the decision to change auditors, but he does not with to do so.
Required: List and show the steps AOW should follow with regard to dealing with a predecessor auditor and a new client before accepting the engagement.