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:

Null Hypothesis

Restated, it is the hypothesis in statistical testing that assumes no significant difference or relationship exists between specified populations, parameters, or data sets.

Statistically Insignificant

A term indicating that the observed difference or relationship in the data could have occurred by chance and does not signify a real effect.

Research Hypotheses

Specified, testable predictions about what will happen under certain conditions, often proposed as an explanation for an observable phenomenon.

Estimate Of Error

An approximation of the amount by which an observed or calculated value may differ from the true value.