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:

Shut-Off Valve

A type of valve designed to cut off the flow of liquids or gases within a pipeline system.

Household Damage

Damage or harm caused to the structure, contents, or occupants of a house due to various factors such as accidents, natural disasters, or wear and tear.

Water Supply

The system or process involved in providing water to meet agricultural, residential, industrial, and all other needs of a population.

States of Nature

The different outcomes or future conditions that might occur in a decision-making scenario, over which the decision maker has no control.