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:

Low-grade Dysplasia

A term that refers to the presence of abnormal cells that have a low potential to transform into cancer.

Peptic Ulcer

A sore that develops on the lining of the stomach, small intestine, or esophagus, often as a result of infection or the overuse of certain drugs.

Perforation

A medical term referring to a hole that develops through the wall of a body organ.

Hemorrhage

The escape of blood from a ruptured blood vessel, leading to bleeding either inside or outside the body.