Which of the Following Statements Is True Regarding Communications Between

question 160

Multiple Choice

Which of the following statements is true regarding communications between predecessor and successor auditors?

• A) The burden of initiating the communication rests with the predecessor.
• B) The predecessor's response can be limited to stating that no information will be provided.
• C) The predecessor should communicate with the successor only if the client is public.
• D) The predecessor auditor of a public company does not need permission from the client before communicating with the successor auditor.

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Definitions:

Variable

A characteristic, number, or quantity that increases or decreases over time, or takes different values in different situations.

Diversify Sources

A strategy to reduce risk in investment or business operations by acquiring a wide range of assets or various types of resources.

Dependency

A situation where one entity relies on another for support, resources, or sustenance.

Mission Statement

An official outline of the goals and principles held by a corporation, organization, or person.