Reference in a Group Auditors' Report to the Fact That

question 171

Multiple Choice

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.

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Definitions:

Exculpatory Clause

A contractual provision that relieves one party from liability for harm or damages caused during the execution of the contract.

Exculpatory Clause

A part of a contractual agreement that releases one party from liability for wrongful actions or damages.

Minor

A person under the legal age of adulthood, which varies by jurisdiction but is commonly 18 years old.

Contract Disaffirmance

The act of rejecting or declaring a contract void, often used in cases where one of the parties was incapacitated or a minor at the time of agreement.