Reference in a group auditors' report to the fact that part of the audit of group financial statements was performed by component auditors most likely would be an indication of
A)involvement of component auditors in the audit of the group financial statements.
B)the portion of the group statements audited by the component auditors not being considered material.
C)group auditors' recognition of the component auditors' competence, reputation, and professional certification.
D)different opinions the auditors are expressing on the components of the financial statements that each audited.

Question

Quizplus · Accepted Answer

The reference in a group auditors' report to the fact that part of the audit of group financial statements was performed by component auditors indicates that the component auditors were involved in the audit of the group financial statements. This is done when the group auditors use the work of component auditors to obtain evidence about certain assertions in the financial statements. It does not indicate anything about the materiality of the portion of the group statements audited by the component auditors nor does it indicate different opinions the auditors are expressing on the components of the financial statements that each audited. Recognition of the component auditors' competence, reputation, and professional certification is not explicitly stated in the reference.

Reference in a Group Auditors' Report to the Fact That