Foley, CPA, is the group engagement partner for a multinational corporation. Pente, CPA, audits a wholly owned subsidiary of this corporation. Which of the following is true about Foley's decision between assumption and division of responsibility under U.S. GAAS?
|
a. | If Foley chooses to divide responsibility, she need not evaluate Pente's reputation and independence. | |
b. | If Foley chooses to assume responsibility, she must not make reference to the component auditor in her report. | |
c. | If Foley chooses to assume responsibility, the report will mention this assumption in the auditor's responsibility paragraph. | |
d. | If Foley chooses to divide responsibility, no reference to the work done by Pente will be included in the audit report. |
|
