Which of the following statements regarding using the work of another auditor is ?
A)The group engagement partner will spend more time reviewing the component auditor's work if the component auditor has a good reputation
B)The group engagement partner will spend less time reviewing the component auditor's work when the component is at risk of material misstatement
C)The component auditor sets out the work to be conducted by the group engagement partner
D)The group engagement partner will spend more time reviewing the component auditor's work when the component is at risk of material misstatement

Question

Quizplus · Accepted Answer

The group engagement partner has responsibility for the overall group audit opinion and must take into account the work of the component auditor. If the component is at risk of material misstatement, the group engagement partner would spend more time reviewing the component auditor's work to ensure that sufficient audit evidence has been obtained. Therefore, option D is the correct choice. Option A is incorrect because the component auditor's reputation does not determine the amount of time spent by the group engagement partner in reviewing their work. Option B is incorrect because if there is a risk of material misstatement in the component, the group engagement partner would spend more time reviewing their work, not less. Option C is incorrect because the component auditor does not set out the work to be conducted by the group engagement partner.

Which of the Following Statements Regarding Using the Work of Another