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Choice c is incorrect the principal auditor does not

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Unformatted text preview: e in his report that part of the audit was made by another auditor. Choice "b" is incorrect. The principal auditor's decision not to assume responsibility for the other auditor's work need not be included in the engagement letter. Choice "c" is incorrect. The principal auditor does not need permission from the other auditor to assume responsibility. Permission is needed only if the principal auditor decides to divide responsibility and would like to refer to the other auditor by name. 7. CPA-02764 When financial statements contain a departure from GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor should explain the unusual circumstances in a separate paragraph and express an opinion that is: a. b. c. d. Unqualified. Qualified. Adverse. Qualified or adverse, depending on materiality. CPA-02764 Choice "a" is correct. When circumstances indicate that financial presentation in accordance with GAAP would be misleading, a departure from GAAP is permissible. In such cases, the auditor should disclose...
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