Which Statement Is Correct Relating to a Potential Successor Auditor's

question 15

Multiple Choice

Which statement is correct relating to a potential successor auditor's responsibility for communicating with the predecessor auditors in connection with a prospective new audit client?

• A) The successor auditors have no responsibility to contact the predecessor auditors.
• B) The successor auditors should obtain permission from the prospective client to contact the predecessor auditors.
• C) The successor auditors should contact the predecessors regardless of whether the prospective client authorizes contact.
• D) The successor auditors need not contact the predecessors if the successors are aware of all available relevant facts.

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Definitions:

Agent's Torts

Refers to wrongs committed by an agent acting on behalf of a principal that can lead to liability for the agent and potentially the principal.

Principal

The main party to a transaction or contract, often distinguished from an agent who acts on behalf of a principal.

Liability

An obligation, either legal or financial, that an individual or entity is required to fulfill towards another party.

Exclusive Easement

A property right that grants the holder the exclusive use of a portion of another's real property for a specified purpose.