The New Auditor Should Communicate with the Previous Auditor in Order

question 156

Multiple Choice

The new auditor should communicate with the previous auditor in order to _______.

• A)gain an understanding about the reasons for the change of auditors
• B)get all the passwords and logins to the client software
• C)get the previous auditor's work papers
• D)serve them with an official change of auditor notice

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Definitions:

Annual Report

A comprehensive report on a company's activities and financial performance throughout the preceding year.

U.S. Stock Exchange

The U.S. Stock Exchange refers to any of the various stock exchanges operating in the United States where stocks of publicly held companies are bought and sold, such as the New York Stock Exchange (NYSE) and NASDAQ.

Comparability Differences

Variations that arise when comparing financial information due to different accounting policies or frameworks.

Disclosure Differences

Variabilities that arise in the way financial information is presented in the financial statements, primarily due to differences in accounting standards or interpretations of those standards.