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Glossary/Making reference to a component auditor

What is Making reference to a component auditor?

In short

A group auditor may refer in its report to the audit of a component performed by another auditor, indicating a division of responsibility for the group's financial statements.

Key takeaways

  • The component auditor's report must not be restricted, and the component's statements must use the same framework or be adjusted.
  • The component auditor isn't named without permission and publication of its report.
  • Making reference isn't a modification of the opinion.

Where it's tested

AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.

Practise: 3 questions

Question 1 of 3 · 0 answered

An auditor is unable to observe the physical inventory count or satisfy themselves through alternative procedures, and inventory represents 60% of total assets. What opinion is appropriate?

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