Group FS reports

Question 1

Steps taken if Group auditor decides not to reference the component auditor

Answer 1

• review audit programs and audit documentations
• determine if the component auditor has sufficient knowledge of components ICs
• Become satisfied to the independence and professional reputation of the component auditor

Question 2

Steps taken if Group auditor decides to reference the component auditor

Answer 2

• make inquires about the professional reputation and independence of the component auditor

Question 3

In what situation would the group auditor most likely NOT refer to the component auditor

Answer 3

The component auditor was retained by the group auditor and the work was performed under the group auditor’s guidance and control.

Question 4

Requirements to reference component auditors report

Answer 4

• FS prepared using same framework
• audit performed using GAAS
• Component report was issued that is NOT restricted for use

Question 5

Changes to report if component auditor is mentioned

Answer 5

Auditors reponsibility paragraph
- We did not audit…..
Opinion paragraph
- In our opinion, BASED ON OUR AUDIT AND THE REPORT OF THE OTHER AUDITORS