The Auditor’s letter of consent is the letter that is prepared by the client or management and communicated to the previous or current Auditor (the outgoing) to inform them about the changing of the Auditor of their company.

This letter is to allow them to provide the information requested by or will be required by the upcoming Auditor (the prospective Auditor).

In general, the company might change its Auditor every year, every three years or sometimes every five years.

It depends on the company policy as well as regulation in the jurisdiction that the company operates.

If a client wants to change Auditor, before accepting the engagement with their client, the upcoming Auditor requests typically the client to prepare the letter of content to the current or previous Auditor that they are going to change or have changed the Auditor. 

The letter also informs the current or previous Auditor that the upcoming Auditor will request or ask for the information from them.

And if it is the case, then the letter is given them the mandate to provide the information or document to the upcoming.

Normally, the upcoming Auditor will send the professional clearance letter to the previous Auditor.

The information that upcoming auditors want to clarify including the reasons that they are changing resigning, if any, any problem that they face during their audit, any reason that upcoming Auditors should not accept the engagement, etc.

Conclusion:

When?

Upon the request from prospective Auditors and generally at the pre accept the stage of the audit engagement.

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Why?

To mandate an outgoing auditor to respond to the request of the coming auditor.

Who?

The letter is prepared by the client and send to the outgoing auditor