CAS 600 Recommends That in the Audit of Group Entities

question 8

Multiple Choice

CAS 600 recommends that in the audit of group entities, where the auditor is not also the auditor of another group entity, the principal auditor may

• A) be able to rely on the work of the other auditor.
• B) ask the other auditor about the independence requirements, and offer representations as to compliance.
• C) send a detailed questionnaire to the other auditor.
• D) ignore the findings of the other auditor.

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Definitions:

Budget Deficit

The financial shortfall when a government's expenditures exceed its revenues over a specified period.

Trade Balance

The gap between a nation's foreign sales and purchases, encompassing both goods and services.

Net Capital Outflow

The difference between a country's total exports of capital and total imports of capital during a specific time period.

Net Exports

The value of a country's total exports minus the value of its total imports.