In auditing ICFR for a public company client, Emily finds that the com- pany has a significant
Question:
In auditing ICFR for a public company client, Emily finds that the com- pany has a significant subsidiary located in a foreign country. Emily's accounting firm has no offices in that country, and the company has thus engaged another reputable firm to conduct the audit of internal control for that subsidiary. The other auditor's report indicates that there are no material weaknesses in the foreign subsidiary's ICFR. What should Emily do?
a. Disclaim an opinion because she cannot rely on the opinion of another auditor in dealing with a significant subsidiary.
b. Accept the other auditor's opinion and express an unqualified opin- ion, making no reference to the other auditor's report in her audit opinion.
c. Accept the other auditor's opinion after evaluating the auditor's work, and make reference to the other auditor's report in her audit opinion.
d. Qualify the opinion because she is unable to conduct the testing her- self, and this constitutes a significant scope limitation.
Step by Step Answer:
Auditing And Assurance Services
ISBN: 9780073527086
7th Edition
Authors: William MessierSteven Glover