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by asked Nov 1, 2021 12 views
A successor auditor most likely would make
specific inquiries of the predecessor auditor
regarding
a. Specialized accounting principles of the
client's industry.
b. Disagreements with management as
to auditing procedures.
c. The competency of the client's
internal
audit staff.
d. The uncertainty inherent in applying
sampling procedures.
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Last Updated on February 3, 2022 by Admin 3
- Specialized accounting principles of the client’s industry.
- The competency of the client’s internal audit staff.
- The uncertainty inherent in applying sampling procedures.
- Disagreements with management as to auditing procedures.
Explanation:
Choice “D” is correct. Inquiries should include specific questions regarding, among other things, facts that might bear on the integrity of management; disagreements with management as to accounting principles, auditing procedures, or other similarly significant matters; communications with those charged with governance regarding fraud, illegal acts, and matters relating to internal control;
and the predecessor’s understanding as to the reasons for the change of auditors.
Choice “A” is incorrect. Specialized industry accounting principles might be discussed; however, the successor would be more likely to inquire about items specific to the client.
Choice “B” is incorrect. The competency of the client’s internal audit staff might be discussed; however, inquiries of the predecessor auditor regarding the staff are not required.
Choice “C” is incorrect. The uncertainty in
applying sampling procedures is not something that is typically discussed with the predecessor auditor.
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