If Group Auditors Choose to Rely on the Work of Component

question 32

True/False

If group auditors choose to rely on the work of component auditors,the group auditors must refer to the component auditors in their report by name.

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Definitions:

Dividends Account

An account in the general ledger that records payouts to shareholders from the company's earnings.

Permanent Account

An account that is not closed at the end of the accounting period and carries its ending balance into the next period, typically including assets, liabilities, and equity accounts.

Dividends Account

An account in the general ledger that records the amount of dividends declared by a company to be paid to shareholders.

Common Stock Account

An equity account that represents the amount of shares owned by shareholders in a corporation.