Morgan,CPA,is the Group Auditor for a Multinational Corporation

question 17

Multiple Choice

Morgan,CPA,is the group auditor for a multinational corporation.Another CPA has examined and reported on the financial statements of a significant subsidiary of the corporation.Morgan is satisfied with the independence and professional reputation of the component auditor,as well as the quality of the component auditor's audit.With respect to Morgan's report on the consolidated financial statements,taken as a whole,Morgan:

• A)Must not refer to the audit of the component auditor.
• B)Must refer to the audit of the component auditor.
• C)May refer to the audit of the component auditor.
• D)May refer to the audit of the component auditor,in which case Morgan must include in the audit report on the consolidated financial statements a qualified opinion with respect to the audit of the component auditor.

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Definitions:

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