When an Auditor Is Approached to Perform an Audit for the First

question 9

Multiple Choice

When an auditor is approached to perform an audit for the first time, the auditor should make inquiries of the previous 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 utilised.
• B) whether the company follows the policy of rotating its auditors.
• C) whether the predecessor's assessment of control risk has been high.
• D) whether the engagement should be accepted.

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Definitions:

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