An auditor is auditing the financial statements of a group. The group engagement partner decides to assume responsibility for the work of a component auditor. In this case, the group engagement partner should:

Answer options:

Make reference to the component auditor in the opinion paragraph.

Not make reference to the component auditor in the auditor's report.

Attach the component auditor's report to the group report.

Issue a shared opinion.

How to approach this question

Group Audits: 1. Assume Responsibility -> No Reference. 2. Divide Responsibility -> Reference.

Full Answer

B.Not make reference to the component auditor in the auditor's report.✓ Correct

Not make reference to the component auditor in the auditor's report.

Under AU-C 600, if the group engagement partner assumes responsibility for the work of the component auditor, they must NOT refer to the component auditor in the audit report. The group partner treats the component's work as their own.

Common mistakes

Thinking you should always credit the other auditor.

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