Which of the following is not an appropriate reporting option when component auditors are involved in the audit of group financial statements, assuming that the component auditors' work did not identify any issues affecting the group auditors' report?
A)Issue a standard report that does not reference any involvement by the component auditors.
B)Identify the component auditors by name and present their report along with the group auditors' report.
C)Refer to the component auditors' work and disclose the extent of their work in the group auditors' report.
D)Disclaim an opinion on the portion of the financial statements examined by the component auditors.

Question

Quizplus · Accepted Answer

Disclaiming an opinion on the portion of the financial statements examined by the component auditors is not an appropriate reporting option if their work did not identify any issues affecting the group auditors' report. This option would imply that the group auditors were unable to obtain sufficient evidence to express an opinion on that portion of the financial statements, which is not the case. The appropriate reporting options would be A, B, or C, depending on the level of disclosure desired by the group auditors.

Which of the Following Is Not an Appropriate Reporting Option