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Unformatted text preview: 's financial
statements are not material to the consolidated financial statements.
b. Document in the engagement letter that the principal auditor assumes no responsibility for the other
CPA's work and opinion.
c. Obtain written permission from the other CPA to omit the reference in the principal auditor's report.
d. Contact the other CPA and review the audit programs and audit documentation pertaining to the
Choice "d" is correct. When the principal auditor decides not to make reference to the audit of the other
auditor, in addition to satisfying himself or herself as to the other auditor's professional reputation and
independence, he or she should visit the other auditor, discuss the audit procedures, and/or review the
audit programs and audit documentation of the other auditor.
Choice "a" is incorrect. The principal auditor may decide not to make reference to the other auditor even
when the portion of the financial statements audited by the other auditor is material. When the auditor
takes this position, he or she should not stat...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING audit cpa taught by Professor Becker during the Fall '12 term at Keller Graduate School of Management.
- Fall '12