A Prospective Client's Refusal to Give Permission to Communicate with the Previous

question 8

Multiple Choice

A prospective client's refusal to give permission to communicate with the previous auditor and review certain portions of the previous auditor's working papers will bear directly on the auditor's decision concerning the:

• A) ability to establish consistency in application of accounting principles.
• B) apparent scope limitation.
• C) integrity of management.
• D) adequacy of the planned audit program.

---

Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), indicating the fraction of income or expenditure paid in taxes.

Payroll Taxes

Taxes imposed on employers and/or employees, and are based on the salary or wages of the employee.

Payroll Tax

Contributions demanded from either employees or employers, frequently calculated based on the salaries that staff are awarded by their employers.

Personal Income Tax

A tax levied on an individual's total personal income, taking into account wages, salaries, and other sources of income.