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

A reference in a group auditors' report to the fact that part of the audit of group financial statements was performed by component auditors indicates the involvement of component auditors in the audit of the group financial statements. This would typically occur when the group auditors engage other auditors to perform work on subsidiaries or divisions that are material to the group financial statements. The group auditors are responsible for reviewing and evaluating the work of the component auditors as part of their overall audit opinion on the group financial statements.

Reference in a Group Auditors' Report to the Fact That