In the auditor's report, the principal auditor decides not to make reference to another CPA who audited an entity's subsidiary. The principal auditor could justify this decision if, among other requirements, the principal auditor:
A)issues an unqualified opinion on the consolidated financial statements.
B)learns that the other CPA issued an unqualified opinion on the subsidiary's financial statements.
C)is unable to review the other CPA's audit programs and working papers.
D)is satisfied as to the other CPA's independence and professional reputation.

Question

Quizplus · Accepted Answer

The principal auditor can decide not to make reference to another CPA if they are satisfied with the other CPA's independence and professional reputation. This indicates trust in the quality of the other CPA's work, making it unnecessary to mention them in the audit report.

In the Auditor's Report, the Principal Auditor Decides Not to Make