When an auditor is approached to perform an audit for the first time, the auditor should make inquiries of the previous auditor. This is a necessary procedure because the predecessor may be able to provide the successor with information that will assist the successor in determining:
A) whether the predecessor's work should be utilised.
B) whether the company follows the policy of rotating its auditors.
C) whether the predecessor's assessment of control risk has been high.
D) whether the engagement should be accepted.

Question

Quizplus · Accepted Answer

The purpose of making inquiries of the previous auditor is to gather information that will assist the successor in determining whether the engagement should be accepted or not. This includes information about the nature of the work performed by the predecessor and any significant issues identified during the previous audit. This information will help the successor in assessing the level of risk associated with accepting the engagement. The other choices are not relevant to this inquiry.

When an Auditor Is Approached to Perform an Audit for the First