All applicable questions are available with Connect.

LO 3-1 3-16 Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessors a. Awareness of the consistency in the application of generally accepted accounting principles between periods. b. Evaluation of all matters of continuing accounting significance. c. Opinion of any subsequent events occurring since the predecessors audit report was issued. d. Understanding as to the reasons for the change of auditors.

LO 3-4 3-17 A written understanding between the auditor and the entity concerning the auditors responsibility for fraud is usually set forth in a(n) a. Internal control letter. b. Letter of audit inquiry. c. Management letter. d. Engagement letter.

LO 3-5 3-18 If the independent auditors decide that it is efficient to consider how the work per- formed by the internal auditors may affect the nature, timing, and extent of audit procedures, they should assess the internal auditors a. Competence and objectivity. b. Efficiency and experience. c. Independence and review skills. d. Training and supervisory skills.

LO 3-7 3-19 During the initial planning phase of an audit, a CPA most likely would a. Identify specific internal control activities that are likely to prevent fraud. b. Evaluate the reasonableness of the entitys accounting estimates. c. Discuss the timing of the audit procedures with the entitys management. d. Inquire of the entitys attorney if it is probable that any unrecorded claims will be asserted.