Communications between Predecessor and Successor Auditors. Your firm has

been contacted by the president of Lyrac Inc. about becoming the companys auditor. Lyrac was

audited last year by PA Diggs and, while generally pleased with the services provided by Diggs,

the president of Lyrac thinks the audit work was too detailed and interfered excessively with normal

office routines. You have asked Lyracs president to inform Diggs of the decision to change

auditors, but he does not wish to do so.

List and discuss the steps to follow in dealing with a predecessor auditor and a new audit client before accepting

the engagement. (Hint: Use the independence rules of conduct for a complete response to this requirement.)