Choice "C" is correct. When the group engagement auditor accepts responsibility for the work performed by a component auditor, the group engagement partner must contact the component auditor and review the audit program and working papers pertaining to the component.Choice "a" is incorrect. When a group engagement partner decides not to reference a component auditor, the group engagement partner has assumed responsibility for the work performed by the component auditor.Choice "b" is incorrect. Permission does not need to be obtained to assume responsibility for the work of the other CPA.Choice "d" is incorrect. When the group engagement partner assumes responsibility for the work of a component auditor, no reference to the component auditor or to the component's financial statements is made in the auditor's report.
