When a CPA Is Approached to Perform an Audit for the First

question 14

Multiple Choice

When a CPA is approached to perform an audit for the first time, the CPA should make inquiries of the predecessor auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining:

• A)whether the predecessor's work should be utilized.
• B)whether, in the predecessor's opinion, the financial statements are materially correct.
• C)whether, in the predecessor's opinion, the company's internal controls have been satisfactory.
• D)whether the engagement should be accepted.

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Definitions:

Resting Potential

The electrical charge of a neuron when it is not active, representing a state of readiness for activation.

Action Potential

A rapid rise and fall in electrical charge across a neuronal membrane, fundamental for nerve impulse transmission.

Millivolts

A unit of electric potential equal to one thousandth of a volt, often used in measurements of neuron activity.

Synaptic Gap

The tiny space between neurons, across which neurotransmitters travel to transmit signals from one neuron to another.