In the Communication with the Predecessor Auditor, the Potential Successor

question 19

Multiple Choice

In the communication with the predecessor auditor, the potential successor should make specific and reasonable inquiries regarding matters that may affect the decision to accept the engagement. Which of the following items is least likely to be included in the inquiries?

• A) the integrity of management
• B) disagreements with management about accounting matters
• C) specific areas of audit difficulty and cost
• D) the predecessor's understanding of the reasons for a change in auditors
• E) disagreements with management about auditing matters

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Definitions:

Allocating Rewards

The process of distributing benefits, compensations, or incentives among individuals or groups based on their performance, contribution, or needs.

Discriminate

The act of making unjust or prejudicial distinctions in the treatment of different categories of people, especially on the grounds of race, sex, or age.

Social Identity

An individual's sense of who they are based on their group membership(s) and the value and emotional significance attached to that membership.

Group Memberships

The affiliations individuals have with various social groups, which can significantly influence identities and social behaviors.