Which of the Following Is Not an Appropriate Reporting Option

question 90

Multiple Choice

Which of the following is not an appropriate reporting option when component auditors are involved in the audit of group financial statements, assuming that the component auditors' work did not identify any issues affecting the group auditors' report?

• A)Issue a standard (unmodified)report that does not reference any involvement by the component auditors.
• B)Identify the component auditors by name and present their report along with the group auditors' report.
• C)Refer to the component auditors' work and disclose the extent of their work in the group auditors' report.
• D)Disclaim an opinion on the portion of the financial statements examined by the component auditors.

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Definitions:

Least-Cost Combination

The least-cost combination is an economic principle that refers to the mix of factors of production that minimizes costs for a given level of output.

Resources

Inputs used in the production of goods and services, such as labor, capital, land, and entrepreneurship.

Output

The total amount of goods or services produced by a company, industry, or economy over a specific period of time.

Least-Cost Combination

is an economic principle where firms aim to produce a given output at the minimum possible cost by choosing the optimal combination of inputs.