Governments often engage one auditor to audit the primary government and other auditors to audit certain component units.In such cases the auditor of the primary government is permitted under generally accepted auditing standards (GAAS)to rely on the work of the other auditors.

Question

Quizplus · Accepted Answer

Generally accepted auditing standards leave it to the principal auditor's judgment whether to rely on the other auditors' work and thus make no reference to the other auditor in the audit report or, alternatively, to refer to the other auditors in the report thus effectively disclaiming responsibility for any work of the other auditors.

Governments Often Engage One Auditor to Audit the Primary Government