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NEW QUESTION: 1
When a principal auditor decides to make reference to another auditor's examination, the principal
auditor's report should always indicate clearly, in the introductory, scope, and opinion paragraphs, the:
A. Magnitude of the portion of the financial statements examined by the other auditor.
B. Division of responsibility.
C. Disclaimer of responsibility concerning the portion of the financial statements examined by the other
auditor.
D. Name of the other auditor.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. Reference to the division of responsibility should be made in the introductory, scope
and opinion paragraphs of the principal auditor's report.
Choice "A" is incorrect. The magnitude of the portion of the FS examined by the other auditor appears only
in the introductory paragraph.
Choice "B" is incorrect. The principal auditor is not disclaiming responsibility, just dividing it.
Choice "C" is incorrect. The name of the other auditor is generally not mentioned, but may be mentioned
with permission and if the other auditor's report is also presented. (Watch out for exclusive words such as
"always" or "never.")
NEW QUESTION: 2
A. Option C
B. Option D
C. Option B
D. Option A
Answer: A
Explanation:
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NEW QUESTION: 3
Place the steps in sequence
Answer:
Explanation:
