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When Reference Is Made to a Component Auditor, _______

Question 46

Multiple Choice

When reference is made to a component auditor, _______.


A) the auditor's responsibility paragraph is modified to indicate the portion of the group financial statements that were audited by the component auditor
B) the auditor's responsibility paragraph is removed, and reference is made to the group financial statements that were audited by the component auditor
C) liability for the fairness of the financial statements is transferred accordingly
D) inherent risk will decrease accordingly

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