Ordinarily, the predecessor auditor permits the successor auditor to review the predecessor's audit documentation relating to:

Question

Quizplus · Accepted Answer

Choice "A" is correct. Ordinarily, the predecessor auditor permits the successor auditor to review the predecessor's audit documentation relating to matters of continuing accounting and auditing significance, including both contingencies and balance sheet accounts. Contingencies have continuing significance as they may continue to affect the current year financial statements (either by remaining as contingencies or by being resolved); balance sheet accounts from the prior year-end have continuing significance since they are the opening balances for the current year. Choices "B", "C", and "D" are incorrect, per above explanation.

Ordinarily, the Predecessor Auditor Permits the Successor Auditor to Review