In the group auditor's report, the group engagement partner decides not to make reference to a...
In the group auditor's report, the group engagement partner decides not to make reference to a component auditor who audited a client's subsidiary. The group auditor could justify this decision if, among other requirements, the group engagement partner
Issues an unmodified opinion on the consolidated financial statements.
Learns that the component auditor issued an unmodified opinion on the subsidiary's financial statements.
Is unable to review the audit programs and audit documentation of the component auditor.
Is satisfied as to the independence and professional reputation of the component auditor.
Homework Answers
option 4 is right.
If the group auditor is satisfied as to the independence of the competent auditor he may not make a reference in the group audit report. This implies that the group auditor is taking the responsibility for the opinion of the competent auditor.
The other options do not justify the non referencing of the competent auditor since the options do not justify why the group auditor is trusting the auditor.
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In the group auditor's report, the group engagement partner
decides not to make reference to a...
Principles of auditing Ch3 QUESTION 8 An auditor's report contains the following sentences:We did not audit...
Principles of auditing Ch3
QUESTION 8 An auditor's report contains the following sentences:We did not audit the financial statements of B Company, a consolidated subsidiary, which statements reflect total assets and revenues constituting 20 percent and 22 percent, respectively, of the related consolidated totals. These statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for B Company, is based solely upon the report of the...
The following auditor's report was drafted by a staff accountant of Paul and Paul, CPAs, at...
The following auditor's report was drafted by a staff accountant of Paul and Paul, CPAs, at the completion of the audit of the comparative financial statements of ABC Corporation for the years ended December 31, 2018 and 2017. The report was submitted to the engagement partner, who reviewed matters thoroughly and properly concluded that an unmodified opinion should be expressed. The draft of the report prepared by an inexperienced staff auditor is as follows: Auditor's Report We have audited the...
18-28 The following auditor's report was drafted by a staff accountant of Nathan and Mat- thew,...
18-28 The following auditor's report was drafted by a staff accountant of Nathan and Mat- thew, CPAs, at the completion of the audit of the comparative financial statements of Monterey for the years ended December 31, 2018 and 2017. The report was sub- mitted to the engagement partner, who reviewed matters thoroughly and properly concluded that an unmodified opinion should be expressed. The draft of the report prepared by an inexperienced staff auditor is as follows: Auditor's Report We have...
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Guidance on Referring to Other Auditors. How do the requirements
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23. The National Association of Insurance Commissioner (NAIC) requires your insurance company client to present certain...
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0 Required information Sections of an Audit Report for a Nonpublic Company Read the overview below...
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0 Required information Sections of an Audit Report for a Nonpublic Company Read the overview below...
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ont Pologi.pl 13. Anestation engagement: a. Has as its primary source of standards the assurance standards...
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Principles of auditing Ch3
QUESTION 8 An auditor's report contains the following sentences:We did not audit the financial statements of B Company, a consolidated subsidiary, which statements reflect total assets and revenues constituting 20 percent and 22 percent, respectively, of the related consolidated totals. These statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for B Company, is based solely upon the report of the...
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Refer to Exhibit 15.3 and the Why It Matters feature Differing
Guidance on Referring to Other Auditors. How do the requirements
for referring to other auditors differ between U.S. auditing
standards and the ISAs?
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