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Unformatted text preview: ted totals. Those statements were audited by other auditors whose report has been furnished to
us, and our opinion, insofar as it relates to the amounts included for EZ Inc., is based solely on the report
of the other auditors.
d. Indicate a division of responsibility.
Assume responsibility for the other auditor.
Require a departure from an unqualified opinion.
Are an improper form of reporting. CPA-02483
Choice "a" is correct. The paragraph presented is the proper form of disclosure when another auditor
performs a substantial portion of the audit. When the principal auditor makes reference to the audit of
another auditor, the report should indicate clearly (in all three paragraphs) the division of responsibility
between the portion of the financial statements covered by each audit.
Choice "b" is incorrect. By making the disclosure that another auditor performed part of the audit, the
auditor explicitly does not assume responsibility for the other auditor's work. If the disclosure is omitted,
then the auditor implicitly does assume responsibility for the other audit...
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- Fall '12