Abbot, CPA, as principal auditor for consolidated financial statements, is using a qualified report of another auditor. Abbot does not consider the qualification material relative to the consolidated financial statements and Abbot is willing to accept responsibility for the work of the other auditor. What recognition, if any, must Abbot make in his report to the report of the other audit?
A)He need make no reference.
B)He must refer to the qualification of the other auditor and qualify his report likewise.
C)He must include the other auditor's report with his report but need not qualify his report.
D)He must include the other auditor's report with his report and give an explanation of its significance.

Question

Quizplus · Accepted Answer

If Abbot does not consider the qualification material relative to the consolidated financial statements and is willing to accept responsibility for the work of the other auditor, he need not make any reference to the report of the other auditor in his report.

Abbot, CPA, as Principal Auditor for Consolidated Financial Statements, Is