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?