The Purpose of Requiring Communication Between the Predecessor and Successor

question 66

Multiple Choice

The purpose of requiring communication between the predecessor and successor auditor is to:

• A) help the successor audit evaluate whether to accept the engagement.
• B) help the client by facilitating the change of auditors.
• C) ensure that information which is provided to ASIC will be accurate.
• D) allow the predecessor to disclose information which would otherwise be confidential.

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Definitions:

Technology Based Information Systems

Systems that employ technology for collecting, processing, storing, and distributing information, facilitating various organizational functions.

Accounting

The systematic process of recording, measuring, and communicating information about financial transactions.