The Group Auditors Decide Not to Refer to the Audit

question 88

Multiple Choice

The group auditors decide not to refer to the audit of component auditors who audited a subsidiary of the group financial statements.After making inquiries about the component auditors' professional reputation and independence,the group auditor most likely would

• A) document in the engagement letter that the group auditors assume no responsibility for the component auditors' work.
• B) obtain written permission from the component auditors to omit the reference in the group auditors' report.
• C) contact the component auditors' and review the audit programs and working papers pertaining to the subsidiary.
• D) add an additional paragraph to the group auditors' report indicating that the subsidiary's financial statements are not material to the consolidated financial statements.

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Definitions:

Biopsychosocial Approach

A holistic perspective in health and psychology that considers biological, psychological, and social factors in understanding and treating illness.

Associative Learning

The process by which an individual learns the connection between two stimuli, or a behavior and a stimulus, through conditioning.

Genetic Predispositions

The inherited genetic patterns that influence the likelihood of developing certain diseases or traits.

Blink

A reflex that closes and then opens the eyelids quickly to help lubricate and protect the eye.