An auditor's report contains the following sentences: We did not audit the financial statements of JK Co., a wholly owned subsidiary, which statements reflect total assets and revenues constituting 17 percent and 19 percent, respectively, of the related consolidated totals. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for JK Co., is based solely on the report of the other auditors. These sentences:

Question

Quizplus · Accepted Answer

Choice "B" is correct. The report indicates a division of responsibility. Choice "A" is incorrect. Words describing the percentages of revenues and assets audited by other auditors are proper in dividing responsibility. Choice "C" is incorrect. Dividing responsibility does not affect the unqualified opinion, nor does it require a disclaimer of opinion. Choice "D" is incorrect. Dividing responsibility does not affect the unqualified opinion, nor does it require a qualified opinion.

An Auditor's Report Contains the Following Sentences: We Did Not