A report that acknowledges reliance on the reports of component auditors is a type of report modification known as a(n)
A) Qualification.
B) Division of responsibility.
C) Expansion of scope.
D) Scope limitation.

Question

Quizplus · Accepted Answer

A report that acknowledges reliance on the reports of component auditors is a type of report modification known as a division of responsibility. This modification is made when the auditor has obtained sufficient audit evidence, but had to rely, in part, on work performed by other auditors or components. The purpose of this modification is to clarify the specific responsibilities of each party involved in the audit.

A Report That Acknowledges Reliance on the Reports of Component