The purpose of requiring communication between the predecessor and successor auditor is:
A) to allow predecessor to disclose information which would otherwise be confidential.
B) to help the successor audit to evaluate whether to accept the engagement.
C) to help the client by facilitating the change of auditors.
D) to ensure that information which is provided to ASIC will be accurate.

Question

Quizplus · Accepted Answer

Requiring communication between the predecessor and successor auditor helps the successor audit to evaluate whether to accept the engagement. This is important because the successor auditor needs to understand the reasons for the change of auditors and any issues that may have arisen during the previous audit. This information can help the successor auditor plan the audit effectively and identify any potential risks or concerns.

The Purpose of Requiring Communication Between the Predecessor and Successor