The use of another CPA firm by an audit firm to perform part of the engagement on a client's subsidiary will require the audit firm to
A)merge with the other CPA firm.
B)perform a peer review on the other CPA firm.
C)ensure the independence of the other CPA firm of the client.
D)list the other firm in the footnotes to the client's financial statements.

Question

Quizplus · Accepted Answer

The use of another CPA firm by an audit firm to perform part of the engagement on a client's subsidiary will require the audit firm to ensure the independence of the other CPA firm of the client. This is essential to maintain the integrity and objectivity of the audit process. The other choices are not relevant in this context.

The Use of Another CPA Firm by an Audit Firm