Before the Group Engagement Partner Chooses to Refer to the Work

question 14

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 experience
• C)The extent to which the group engagement partner will be able to be involved in the work of the component auditor
• D)Whether the component auditor will be able to obtain information affecting the consolidation process from the group engagement team
• E)Whether the component auditor operates in a regulatory environment that actively oversees auditors
• F)both A and B
• G)both C and E
• H)both D and E

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Definitions:

Not-for-Profit Organisations

Organizations that operate to serve a public or social benefit, rather than to make profit for owners or shareholders.

Administrators

Managers who work in public or not‐for‐profit organisations.

Emerging Technologies

New and innovative technologies that have the potential to significantly impact existing markets and societal norms.

Globalisation

The method through which companies or various organizations gain international influence or begin functioning globally.