Pell, CPA, Decides to Serve as Principal Auditor in the Audit

question 984

Multiple Choice

Pell, CPA, decides to serve as principal auditor in the audit of the financial statements of Tech Consolidated, Inc. Smith, CPA, audits one of Tech's subsidiaries. In which situation(s) should Pell make reference to Smith's audit?

• A) Pell reviews Smith's audit documentation and assumes responsibility for Smith's work, but expresses a qualified opinion on Tech's financial statements. II. Pell is unable to review Smith's audit documentation; however, Pell's inquiries indicate that Smith has an excellent reputation for professional competence and integrity.
• B) I only.
• C) II only.
• D) Both I and II.
• E) Neither I nor II.

---

Definitions:

Codominant

Codominant refers to a genetic scenario where two different alleles of a gene are expressed equally in the phenotype of a heterozygote.

Recessive

A term for a gene that directs the development of a particular characteristic only if the corresponding gene on the other chromosome matches it—i.e., is the same allele.

Genetic Inheritance

The process by which an offspring receives genes from its parents, explaining how traits or conditions are passed from one generation to the next.

Origin of Species

The scientific explanation of how different kinds of living organisms are believed to have developed, especially as popularized by Charles Darwin's work.