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

question 26

Multiple Choice

In the auditor's report, the principal auditor decides not to make reference to another CPA who audited an entity'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 other CPA's audit programs and working papers.
• D)is satisfied as to the other CPA's independence and professional reputation.

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Definitions:

Spoliation

The intentional, reckless, or negligent withholding, hiding, altering, or destroying of evidence relevant to a legal proceeding.

Sanctions

are penalties or other measures imposed against individuals, organizations, or countries to compel compliance with laws or regulations, often used in international relations.

Summary Judgment

A legal determination made by a court without a full trial, typically ruling that no material facts are in dispute and that one party is entitled to judgment as a matter of law.

Pleadings

Formal statements made by the plaintiff and the defendant in a lawsuit that detail the facts, allegations, and defenses involved in the litigation; the complaint and answer are part of the pleadings.