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 limitations.

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 is because the auditor is dividing the responsibility of the audit opinion with other auditors who have audited parts of the company's financial statements. The auditor is essentially stating that they are not solely responsible for the audit opinion but are relying on the work of other auditors.

A Report That Acknowledges Reliance on the Reports of Component