In the Request for Information from the Predecessor Auditor,the New

question 131

Multiple Choice

In the request for information from the predecessor auditor,the new auditor may ask for information about the following item

• A)the integrity of management.
• B)disagreements with management about the fee payment schedule.
• C)communications to management regarding fraud and noncompliance with laws or regulations by the company.
• D)communications to management and those charged with governance regarding significant deficiencies and material weaknesses in financial reporting.

---

Definitions:

Accrual

Accrual accounting is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.

Footnote Disclosure

Additional notes included in financial statements to provide more detailed information about the company's fiscal status, accounting policies, or individual line items.

Contingencies

Conditions or events with uncertain outcomes that may represent potential liabilities and are recorded in financial statements if they are probable and estimable.

Sick Pay Policy

A company's formal plan detailing the compensation employees receive when they are unable to work due to illness.