Question

The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when:

A) the predecessor auditor has poor relations with the successor auditor.
B) the client is dissatisfied with the predecessor's work.
C) there are actual or potential legal problems between the client and the predecessor.
D) the predecessor believes that the client lacks integrity.

Answer 1

The predecessor auditor is required to respond to the request of the successor auditor for information, but the response can be limited to stating that no information will be provided when there are actual or potential legal problems between the client and the predecessor.

Step-by-step explanation:

The subject of this question is Business and it is applicable to College level studies.

The predecessor auditor is required to respond to the request of the successor auditor for information. However, the response can be limited to stating that no information will be provided in certain situations. These situations include when there are actual or potential legal problems between the client and the predecessor, or when the predecessor believes that the client lacks integrity.

Therefore, option C) There are actual or potential legal problems between the client and the predecessor is the correct answer.