Communication with Predecessor - In the Event of Incapacitation of the Predecessor

As a practitioner, you should be well aware that CPABC Code of Professional Conduct Rule 302.1 requires you, prior to accepting an engagement, to take reasonable steps to communicate with the predecessor to enquire whether there are any circumstances that should be taken into account which might influence your decision whether or not to accept the engagement. Rule 303.2 places the requirement on the predecessor to respond promptly to such Rule 302.1 communication.

Where the predecessor was forced to withdraw, or resign, from the engagement due to incapacitation, it might be difficult for that practitioner to provide a prompt, or any response to a Rule 302.1 communication. In such circumstances, the onus is on the successor to carefully document in the engagement file the reasons why the required communication under Rule 302.1 was not completed.

The above scenario might extend into Rule 303, if the predecessor possesses client information that the successor needs to complete the new engagement. In most cases, the client will collaborate with the Assisting Accountant, the executor or trustee of the estate, or a family member to obtain such information for the successor.