3. A component auditor, which is a different accounting firm, may audit a component or subsidiary of the parentcompany.A. TrueB. False4. Characteristics of a pervasive misstatement or scope limitation include that is it not confined to specificelements, accounts, or items of the financial statements.A. TrueB. False5. If the subsidiary 's financial statements audited by the component auditor is a material amount of the groupfinancial statements, the group engagement partner typically decides to reference the work completed by thecomponent auditor in the audit report.A. TrueB. False

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3. A component auditor, which is a different accounting firm, may audit a component or subsidiary of the parent company. A. True B. False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

3. A component auditor, which is a different accounting firm, may audit a component or subsidiary of the parent
company.
A. True
B. False
4. Characteristics of a pervasive misstatement or scope limitation include that is it not confined to specific
elements, accounts, or items of the financial statements.
A. True
B. False
5. If the subsidiary 's financial statements audited by the component auditor is a material amount of the group
financial statements, the group engagement partner typically decides to reference the work completed by the
component auditor in the audit report.
A. True
B. False

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please answer correct
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