Which of the Following Is Not an Appropriate Reporting Option

question 69

Multiple Choice

Which of the following is not an appropriate reporting option when component auditors are involved in the audit of group financial statements, assuming that the component auditors' work did not identify any issues affecting the group auditors' report?

• A)Issue a standard report that does not reference any involvement by the component auditors.
• B)Identify the component auditors by name and present their report along with the group auditors' report.
• C)Refer to the component auditors' work and disclose the extent of their work in the group auditors' report.
• D)Disclaim an opinion on the portion of the financial statements examined by the component auditors.

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Definitions:

Chain Line

A line representing the center of a chain's path between two sprockets, important for aligning drivetrain components in machines.

Datum

A reference point, line, or surface on an object used as a basis for geometric calculations, measurements, or to define a coordinate system.

Datum Feature

An exact point, axis, or plane upon which dimensions are based or measurements are taken in technical drawings.

Surface Plate

A flat, rigid plate used as a reference plane for precision inspection, marking, and layout of materials in machining and quality control operations.