In the Auditor's Report, the Principal Auditor Decides Not to Make

question 69

Multiple Choice

In the auditor's report, the principal auditor decides not to make reference to another CPA who audited a client's subsidiary. The principal auditor could justify this decision if, among other requirements, the principal auditor:

• A) Issues an unqualified opinion on the consolidated financial statements.
• B) Learns that the other CPA issued an unqualified opinion on the subsidiary's financial statements.
• C) Is unable to review the audit programs and audit documentation of the other CPA.
• D) Is satisfied as to the independence and professional reputation of the other CPA.

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Definitions:

Afferent Neurons

Nerve cells that carry sensory information from the body's tissues and organs to the brain or spinal cord.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information throughout the body.

Myelin Sheath

A protective layer of fatty substance that surrounds the axons of many neurons, enhancing the speed of electrical impulses along the neuron.

Neuron

A neuron, which serves as the foundational unit of the nervous system, crucial for conveying information all over the body.