A privity letter should NOT be provided:

Question

Quizplus · Accepted Answer

A privity letter should only be provided if the third party acknowledges in writing the potential inadequacy of the audit report for its purpose. The other options are incorrect because privity letters may be necessary if the audit is being conducted under the Corporations Act, privity letters are not required under all circumstances, and the letter should be provided even if reliance is foreseeable but only after the third party acknowledges the potential inadequacy of the audit report.

A Privity Letter Should NOT Be Provided