When Reference Is Made to a Component Auditor, _______

question 105

Multiple Choice

When reference is made to a component auditor, _______.

• A)the auditor's responsibility paragraph is modified to indicate the portion of the group financial statements that were audited by the component auditor
• B)the auditor's responsibility paragraph is removed, and reference is made to the group financial statements that were audited by the component auditor
• C)liability for the fairness of the financial statements is transferred accordingly
• D)inherent risk will decrease accordingly

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Definitions:

Vowel And Consonant Sounds

Refers to the basic units of sound in languages, with vowels being speech sounds from open vocal tract configurations and consonants from closed ones.

Piaget's Theory

A theory of cognitive development that describes how children develop logical thinking and reasoning skills through four stages of development.

Cognitive Abilities

Mental capabilities that include reasoning, memory, attention, and language that contribute to the acquisition of knowledge and problem-solving.

Egocentric

A perspective or behavior characterized by a preoccupation with one's own experiences and a lack of consideration for the perspectives of others.