The extent of review of the component auditor's work depends on a number of factors.The group engagement partner will spend more time if the component auditor ________.
A)has a good reputation
B)is dealing with a component that is material
C)has done audit work for the group engagement partner in the past
D)is auditing statements that are at low risk of material misstatement

Question

Quizplus · Accepted Answer

The extent of review of the component auditor's work will depend on factors such as the materiality of the component and their level of risk. Therefore, if the component auditor is dealing with a component that is material, the group engagement partner will spend more time reviewing their work. Option A is not necessarily relevant to the extent of review, nor is option C. Option D is also not necessarily relevant as low risk does not necessarily mean less review.

The Extent of Review of the Component Auditor's Work Depends