The purpose of the requirement in having communication between the predecessor and successor auditors is to
A) allow the predecessor to disclose information which would otherwise be confidential.
B) help the successor auditor to evaluate whether to accept the engagement.
C) help the client by facilitating the change of auditors.
D) ensure the predecessor collects all unpaid fees prior to a change in auditor.

Question

Quizplus · Accepted Answer

The purpose of the communication between predecessor and successor auditors is to help the successor auditor evaluate whether to accept the engagement. This communication may include information about the client's business, accounting systems, internal controls, and other relevant matters that may impact the audit. This information can help the successor auditor assess the risk of accepting the engagement and plan the audit accordingly. It is not intended for the predecessor to disclose confidential information or to ensure payment of fees. While it may also facilitate the change of auditors and help the client, these are not the primary purposes of the communication between the auditors.

The Purpose of the Requirement in Having Communication Between the Predecessor