is based solely on the report of the other auditors

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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. These sentences: a. b. c. 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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