Dussault & Montgomery,the auditors of Greenwich Corp. ,relied on Groves & Padden,another PA firm,to audit the Quebec subsidiaries of Greenwich.The responsibility for the opinion to issue on the financial statements is the responsibility of
A)Greenwich Corp.
B)Dussault & Montgomery.
C)Groves & Padden.
D)Dussault & Montgomery and Groves & Padden.

Question

Quizplus · Accepted Answer

Dussault & Montgomery are the auditors of Greenwich Corp., and therefore they are responsible for issuing the opinion on the overall financial statements of the company, even if they relied on another PA firm to audit the Quebec subsidiaries. The responsibility cannot be shared with Groves & Padden as they are only responsible for the work they performed on the Quebec subsidiaries. Ultimately, it is Greenwich Corp. that is responsible for the financial statements, but the auditors are responsible for providing an opinion on their fairness and compliance with accounting standards.

Dussault & Montgomery,the Auditors of Greenwich Corp