The Purpose of the Requirement in Having Communication Between the Predecessor

question 95

Multiple Choice

The purpose of the requirement in having communication between the predecessor and successor auditors is to

• A) allow the predecessor to disclose information which would otherwise be confidential.
• B) help the successor auditor to evaluate whether to accept the engagement.
• C) help the client by facilitating the change of auditors.
• D) ensure the predecessor collects all unpaid fees prior to a change in auditor.

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Definitions:

Marginal Gain

The additional benefit or improvement gained from producing or consuming one more unit of a product or service.

Optimal Solution

The best possible outcome or solution that maximizes or minimizes the objective function within the constraints of a problem.

Constraints

Limitations or restrictions that are placed on a situation, process, or activity.

Linear Program

A mathematical technique aimed at optimizing outcomes within a mathematical model that is defined by linear equations.