The Main Reason for Communication Between the Predecessor and Successor

question 45

Multiple Choice

The main reason for communication between the predecessor and successor auditor is to:

• A) establish the likelihood that fees will be paid.
• B) pass on working papers.
• C) satisfy ASIC requirements.
• D) determine any implications for the independence of the successor.

---

Definitions:

Economic Program

A set of coordinated policies and plans undertaken by a government or organization to achieve specific economic objectives.

New Deal

An array of initiatives, including public infrastructure projects, monetary policy changes, and regulatory measures, implemented by President Franklin D. Roosevelt in the 1930s in the United States to combat the effects of the Great Depression.

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that provides deposit insurance to depositors in U.S. commercial banks and savings institutions.

SEC

Short for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and enforcing federal securities laws.