Abbot, CPA, as Principal Auditor for Consolidated Financial Statements, Is

question 55

Multiple Choice

Abbot, CPA, as principal auditor for consolidated financial statements, is using a qualified report of another auditor. Abbot does not consider the qualification material relative to the consolidated financial statements and Abbot is willing to accept responsibility for the work of the other auditor. What recognition, if any, must Abbot make in his report to the report of the other audit?

• A)He need make no reference.
• B)He must refer to the qualification of the other auditor and qualify his report likewise.
• C)He must include the other auditor's report with his report but need not qualify his report.
• D)He must include the other auditor's report with his report and give an explanation of its significance.

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Definitions:

Cognitive Need

A psychological term that refers to an individual's desire to acquire new knowledge and understandings, contributing to their intellectual development.

Transcendence

Going beyond ordinary limits; surpassing or exceeding normal boundaries or levels.

Human Welfare

The general health, happiness, and safety of individuals and communities.

Office Gang

A group of colleagues who often collaborate or socialize together within a workplace.