Smith, CPA Has Requested Permission to Communicate with the Predecessor

question 83

Multiple Choice

Smith, CPA has requested permission to communicate with the predecessor auditor in order to review certain workpapers for high risk accounts for a new audit client.The new audit client's refusal to allow this communication to occur would impact Rodgers decision concerning:

• A)the auditor's ability to design audit tests.
• B)possible scope exception due to lack of access.
• C)the desirability of accepting the prospective engagement.
• D)violation of the GAAP rules concerning consistency and comparability of financial information.

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Definitions:

Secondary Storage

Non-volatile storage media used to store data permanently, such as hard drives, SSDs, or magnetic tape.

Magnetic Tape

A secondary storage medium on a large open reel or in a smaller cartridge or cassette.

Cache Memory

A type of high-speed memory that enables the computer to temporarily store blocks of data that are used more often and that a processor can access more rapidly than main memory (RAM).

Thin Clients

Computing devices that operate in a server-based network without requiring many local resources, relying on the central server for processing activities.