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

question 8

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/unmodified opinion on the consolidated financial statements.
• B) Learns that the other CPA issued an unqualified/unmodified 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:

Sabbatical Leaves

Authorized absences from work, typically for academic or research pursuits, granted to employees as a benefit or reward.

Corporate Philanthropy

The act of a corporation donating some of its profits or resources to charitable causes.

Hurricane

A powerful tropical storm characterized by a low-pressure center, strong winds, and a spiral arrangement of thunderstorms that produce heavy rain.

Discrimination

Biased treatment of a job candidate or employee.