When a Company Has Changed Auditors,according to the Professional Standards

question 37

Multiple Choice

When a company has changed auditors,according to the Professional Standards:

• A)The successor auditor has the responsibility to initiate contact with the predecessor auditor to ask about the client before the engagement is accepted;the predecessor has no responsibility to initiate this contact,even when aware of matters bearing on the integrity of management.
• B)The predecessor must always respond fully to all inquiries made by the successor auditor.
• C)The successor must discuss with the predecessor matters bearing on the engagement prior to accepting the engagement.
• D)The successor may choose not to attempt any communication with the predecessor auditor.

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Definitions:

Craik And Lockhart

Refers to a theory of memory proposed by Fergus I. M. Craik and Robert S. Lockhart that suggests memory retention is determined by the depth of mental processing, with deeper levels of analysis leading to more enduring memory.

Rectangular

Having the shape or characteristics of a rectangle, which is a four-sided figure with opposing sides equal and right angles.

Long-Term Memory

The phase of the memory system capable of storing information for prolonged periods, often throughout a person's life.

Unlimited Capacity

A hypothetical concept suggesting that there's no upper limit to the amount of information the human brain can store.