Before the Group Engagement Partner Chooses to Refer to the Work

question 26

Multiple Choice

Before the group engagement partner chooses to refer to the work of a component auditor he must obtain an understanding of the component auditor.This is done by determining

• A)Whether the component auditor understands and will comply with the ethical requirements relevant to the group audit,and in particular whether the component auditor is competent
• B)The component auditor's professional competence
• C)The extent to which the component auditor will be able to be involved in the work of the group engagement partner
• D)Whether the group engagement team will be able to obtain information affecting the consolidation process from a component auditor
• E)Whether the group engagement team operates in a regulatory environment that actively oversees auditors
• F)both A and C
• G)both B and D
• H)both D and E

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Definitions:

Comparative Balance Sheets

Financial statements that show a company's financial position at different points in time, facilitating analysis of trends and changes.

Year 1

Year 1 often refers to the first fiscal or calendar year of operation for a business or the initial year in a time series analysis.

Comparative Balance Sheets

Comparative balance sheets display the financial position of a business at different points in time, facilitating the analysis of trends over time.

Year 1

Typically refers to the first year of operation for a business or the initial year in a time series analysis in accounting or finance contexts.