When the Prospective Client Has Previously Been Audited, Auditing Standards

question 59

True/False

When the prospective client has previously been audited, auditing standards require that the successor auditor make certain inquiries of the predecessor auditor before accepting the engagement.

---

Definitions:

Quorum

The minimum number of members needed to be present at a meeting to make the proceedings of that meeting valid.

Substantial Portion

Refers to a significant part or quantity of something, usually in comparison to the whole.

Corporate Assets

Resources owned by a corporation that have economic value and can be used to meet debts, commitments, or investments.

Articles Of Incorporation

These are formal documents filed with a governmental body to legally document the creation of a corporation.