US Auditing Standards Recommend That a Successor Auditor on an Initial

question 104

True/False

U.S. auditing standards recommend that a successor auditor on an initial audit obtain client permission to communicate with the predecessor auditor.

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Definitions:

Pre-tax Effect

The impact on financial results before the adjustment for taxes has been made.

Units

In accounting and financial reporting, it can refer to a measure of quantity, such as items sold or produced.

Perpetual Inventory System

An inventory management system that updates inventory records for each purchase and sale in real-time.

Gross Method

An accounting practice where purchases are recorded at their gross price without deducting any cash discounts.