When an auditor is approached to perform an audit for the first time, the auditor should make enquiries 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

Enquiries of the previous auditor are made to assist the successor in determining whether to accept the engagement. This includes considering factors such as the integrity of management, the company's business risks, and whether the predecessor's work can be relied upon. Information on policy for rotation of auditors or assessment of control risk may also be useful but are not the primary purpose of the inquiries.

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