When a principal auditor decides to make reference to another auditor's examination, the principal auditor's report should always indicate clearly, in the introductory, scope, and opinion paragraphs, the:

Question

Quizplus · Accepted Answer

Choice "D" is correct. Reference to the division of responsibility should be made in the introductory, scope and opinion paragraphs of the principal auditor's report. Choice "A" is incorrect. The magnitude of the portion of the FS examined by the other auditor appears only in the introductory paragraph. Choice "B" is incorrect. The principal auditor is not disclaiming responsibility, just dividing it. Choice "C" is incorrect. The name of the other auditor is generally not mentioned, but may be mentioned with permission and if the other auditor's report is also presented. (Watch out for exclusive words such as "always" or "never.")

When a Principal Auditor Decides to Make Reference to Another