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

Question

Quizplus · Accepted Answer

Requiring communication between the predecessor and successor auditor helps the successor audit evaluate whether to accept the engagement. This communication allows the successor to obtain information about the client's business and any potential issues that may impact the audit. It also enables the predecessor to disclose any relevant information to the successor, such as concerns about management integrity or disagreements about accounting treatments.

The Purpose of Requiring Communication Between the Predecessor and Successor