Which of the Following Will an Auditor Most Likely Discuss

question 67

Multiple Choice

Which of the following will an auditor most likely discuss with the former auditors of a potential client prior to acceptance?

• A)Integrity of management.
• B)Reasons for changing audit firms.
• C)Disagreements with management regarding accounting principles.
• D)All of the above must be discussed.

---

Definitions:

Tort Liability

Legal responsibility for damages caused by a civil wrong or injury other than breach of contract.

Employers

Organizations or individuals who hire others to perform services in exchange for compensation.

Independent Contractors

Individuals or entities hired to perform specific tasks or services for a company but are not considered employees of the company.

Exclusive Agency Contract

A binding agreement between a principal and an agent granting the agent the sole rights to act on the principal's behalf within a certain market area or for specified activities.