Which of the Following Statements Regarding Communications Between Predecessor and Successor

question 26

Multiple Choice

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

• A)Successor auditors are required to make certain enquiries 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:

Diffusion of Responsibility

A socio-psychological phenomenon whereby a person is less likely to take responsibility for action or inaction when others are present.

Urban Apathy

A state of indifference and lack of concern among city dwellers towards their community and surroundings, often attributed to overstimulation and perceived powerlessness.

Six-person Juries

A group of six individuals selected to deliberate and make decisions in a legal case, smaller than the traditional twelve-member jury.

Cohesive

Describes a group or material that sticks together tightly, often used to describe a team with strong bonds and unity.