Which of the Following Statements Regarding Communications Between Predecessor and Successor

question 8

Multiple Choice

Which of the following statements regarding communications between predecessor and successor auditors is FALSE?

• A) Successor auditors are required to make certain inquiries of predecessor auditors when a new client is obtained.
• B) The successor auditor should ask the new client to notify the predecessor auditor of the proposed change.
• C) The successor auditor should then ask the predecessor "whether there are any circumstances that should be taken in account which might influence the potential successors' decision whether to accept the appointment."
• D) When enquiries are made, the successor auditor does not need the client's permission for the predecessor auditor to disclose confidential information.

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Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a handbook used by healthcare professionals as the authoritative guide to diagnose mental disorders.

Diagnostic Criteria

A set of guidelines and symptoms used by healthcare professionals to identify and classify diseases or disorders.

Bipolar I Disorder

Mood disorder characterized by extremely elevated moods during manic episodes.

Auditory Stimulus

Any sound that elicits a response from the hearing system.