Which of the following statements regarding communications between predecessor and successor auditors is FALSE?
A) Successor auditors are required to make certain inquiries of predecessor auditors when a new client is obtained.
B) The successor auditor should ask the new client to notify the predecessor auditor of the proposed change.
C) The successor auditor should then ask the predecessor "whether there are any circumstances that should be taken in account which might influence the potential successors' decision whether to accept the appointment."
D) When enquiries are made, the successor auditor does not need the client's permission for the predecessor auditor to disclose confidential information.

Question

Quizplus · Accepted Answer

When making inquiries of the predecessor auditor, the successor auditor typically needs to obtain the client's permission for the predecessor auditor to disclose confidential information. This is because the duty of confidentiality generally belongs to the client and not the auditor. Therefore, choice D is the statement that is false.

Which of the Following Statements Regarding Communications Between Predecessor and Successor