The portion of the consolidated financial statements audited by the component auditor _______.
A)is expressed in dollar amounts only
B)must be expressed in terms of percentages of total assets only
C)can be expressed in dollar amounts or percentages of total assets, total revenues, or other appropriate criteria
D)should not be relied on to the same extent as the group auditor

Question

Quizplus · Accepted Answer

The portion of the consolidated financial statements audited by the component auditor can be expressed in dollar amounts or percentages of total assets, total revenues, or other appropriate criteria, depending on the auditor's judgment. This information should be disclosed in the auditor's report, and users should consider the limitations of the component auditor's work when relying on it.

The Portion of the Consolidated Financial Statements Audited by the Component