Which of the following report modifications would not be necessary if group auditors indicate a division of responsibility?
A) A reference to component auditors' work in the introductory paragraph.
B) A reference to the report of component auditors providing a basis for the opinion in the scope paragraph.
C) A reference to the report of component auditors in the opinion paragraph.
D) An additional paragraph summarizing the components (and dollar and percentage magnitudes of the components) examined by component auditors.

Question

Quizplus · Accepted Answer

If group auditors indicate a division of responsibility, an additional paragraph summarizing the components examined by component auditors is required to provide the users of the report with information about the areas of the financial statements that were audited by the component auditors. A reference to the component auditors' work in the introductory paragraph, a reference to the report of component auditors providing a basis for the opinion in the scope paragraph, and a reference to the report of component auditors in the opinion paragraph are necessary modifications in the case of a division of responsibility.

Which of the Following Report Modifications Would Not Be Necessary