The Group Auditors Decide Not to Refer to the Audit

question 62

Multiple Choice

The group auditors decide not to refer to the audit of component auditors who audited a subsidiary of the group financial statements. After making inquiries about the component auditors' professional reputation and independence, the group auditor most likely would

• A)document in the engagement letter that the group auditors assume no responsibility for the component auditors' work.
• B)obtain written permission from the component auditors to omit the reference in the group auditors' report.
• C)contact the component auditors' and review the audit programs and working papers pertaining to the subsidiary.
• D)add an other-matter paragraph to the group auditors' report indicating that the subsidiary's financial statements are not material to the consolidated financial statements.

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Definitions:

Cell-Mediated Immunity

The aspect of the immune response that involves the activation of certain immune cells to fight off pathogens, rather than the production of antibodies.

B Cell

A type of lymphocyte involved in the immune response by producing antibodies to neutralize pathogenic threats.

Antibodies

Proteins produced by the immune system that recognize and neutralize foreign objects like bacteria and viruses.

Effector T Cells

A subset of T cells that actively respond to a previously encountered antigen, playing a crucial role in the immune response by attacking infected cells.