When Component Auditors Are Involved in the Audit of Group

question 121

Multiple Choice

When component auditors are involved in the audit of group financial statements, the group auditors are required to

• A)consider the independence and professional reputation of the component auditors in deciding how to utilize their work.
• B)identify the extent of component auditors' involvement if they choose not to rely on the component auditors' work.
• C)identify the component auditors by name in their report to appropriate limit their liability for the component auditors' work.
• D)disclaim an opinion on the portion of the financial statements examined by the component auditors.

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Definitions:

Flexible And Unfocused

Describes a situation or approach that is adaptable but lacks a clear direction or objective.

Organization Of A Message

The way in which information is structured and presented in a communication.

Technical Issues

Problems or challenges related to the use of technology, including hardware, software, and network components.

Proofreading

The process of reviewing and correcting written material to ensure accuracy, clarity, and correctness before it is published or shared.