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

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 is important because independence is a key factor in providing unbiased audit opinions. Communication between the predecessor and successor auditor typically involves discussing matters such as any major issues or disagreements with management, any weaknesses in internal control, any fraud or illegal acts known to the predecessor, etc.

The Main Reason for Communication Between the Predecessor and Successor