Which of the Following Statements Regarding Communications Between Predecessor and Successor

question 35

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 predecessor auditor does not need the client's permission to provide the successor auditor with confidential information.

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Definitions:

Continuous Random Variable

A type of random variable that can take an infinite number of values in a continuous range.

Probability Mass Function

A function that gives the probabilities of discrete outcomes.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states under a given number of observations.

Expected Value

The long-run average value of repetitions of an experiment it represents, often used in probability and statistics.