18 Questions
What is the primary reason for the predecessor accountant to provide information to the proposed accountant?
To provide all relevant facts and other information concerning the identified or suspected non-compliance
What should the proposed accountant do if they are unable to communicate with the predecessor accountant?
Take reasonable steps to obtain information about the circumstances of the change of appointment by other means
What is the main consideration for the predecessor accountant when deciding what information to provide to the proposed accountant?
The predecessor accountant's own professional judgment
What is one of the options available to the proposed accountant to obtain information about the circumstances of the change of appointment?
Conducting background investigations of management or those charged with governance
In what circumstances may the predecessor accountant be prohibited from providing information to the proposed accountant?
When prohibited by law or regulation
What may the professional accountant consider when assessing the circumstances of the change of appointment?
Consulting internally with other firm members
What is a necessary step for a proposed accountant to initiate discussions with the existing or predecessor accountant?
Written permission from the client
What is a proposed accountant's responsibility if unable to communicate with the existing or predecessor accountant?
Take other reasonable steps to obtain information
What is an existing or predecessor accountant's responsibility when responding to a communication from a proposed accountant?
Comply with relevant laws and regulations, and provide honest and unambiguous information
What might affect whether an existing or predecessor accountant is permitted or required to discuss a client's affairs with a proposed accountant?
Both the nature of the engagement and the legal and ethics requirements
What is a consequence of an existing or predecessor accountant's confidentiality obligation?
The accountant is bound by confidentiality
What is a purpose of obtaining information from other sources, such as third-party inquiries or background investigations?
To obtain information about senior management or those charged with governance of the client
Who is responsible for ensuring that the client's business activities are conducted in accordance with laws and regulations?
Management and those charged with governance
What should a professional accountant do when they become aware of a matter related to non-compliance?
Take timely steps to address the matter
Who is responsible for identifying and addressing non-compliance by individuals working for or under the direction of the client?
Management and those charged with governance
What is the primary concern of management and those charged with governance in ensuring compliance with laws and regulations?
Minimizing potential harm to investors, creditors, and employees
What is the timeframe for a professional accountant to take steps to comply with this section when they become aware of a matter related to non-compliance?
On a timely basis
Who is responsible for ensuring that the client's business activities are conducted in accordance with professional standards?
Professional accountants
Learn about the process of obtaining information from various sources, including third-party inquiries and background investigations, and communicating with the existing or predecessor accountant during an audit. Understand the importance of client permission and alternative procedures when communication is not possible.
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