What Is the Responsibility of an Auditor with Respect to Communicating

question 42

Multiple Choice

What is the responsibility of an auditor with respect to communicating with the previous auditor in connection with a prospective new audit client?

• A)The auditor has no responsibility to contact the previous auditor.
• B)The auditor should contact the previous auditor regardless of whether the prospective client authorises contact.
• C)The auditor need not contact the previous auditor if the successor is aware of all available facts.
• D)The auditor should obtain permission from the prospective client to contact the previous auditor.

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Definitions:

Collaborative Problem-Solving

An approach to addressing issues where multiple parties work together to come up with and implement solutions.

Functional Chimneys

Siloed divisions within an organization, where communication and cooperation across departments are limited, often leading to inefficiency.

Informal Structure

The informal structure is the set of unofficial relationships among an organisation’s members.

Shadow Organisation

The informal network within a company, shaping its culture and operations outside the formal organizational structure.