The main reason for communication between the predecessor and successor auditor is to:
A) determine any implications for the independence of the successor.
B) establish the likelihood that fees will be paid.
C) satisfy ASIC requirements.
D) pass on working papers.

Question

Quizplus · Accepted Answer

The main reason for communication between the predecessor and successor auditor is to determine any implications for the independence of the successor. This communication is important to ensure that the successor auditor can maintain their independence and provide an objective opinion on the financial statements. Other reasons, such as establishing the likelihood of fees being paid, satisfying ASIC requirements, or passing on working papers, may also be important, but they are not the primary reason for the communication between the two auditors.

The Main Reason for Communication Between the Predecessor and Successor