Homework Help is Here – Start Your Trial Now!
Business
Accounting
Janine and Cristin are discussing the work of component auditors one day while sitting in the campus cafeteria. Janine mentions to Cristin that she is not sure to what extent the component auditor's shares responsibility for the audit report. Which of the following represents Cristin's most appropriate response? O If the parent company auditors elect not to reference the component auditor in the audit report, then the parent company audit firm assumes full responsibility for the contents of the audit report. O The component auditor shares full responsibility for the audit report issued by the parent company's auditor. This is because the financial statements of the parent company include the subsidiary. O The parent company auditors and the component company auditors typically preemptively determine a percentage of responsibility and subsequent liability in the event of future litigation. O The component auditor has no responsibility for the audit report under any circumstances. The component auditor is simply engaged to report on the financial condition of the subsidiary.

Janine and Cristin are discussing the work of component auditors one day while sitting in the campus cafeteria. Janine mentions to Cristin that she is not sure to what extent the component auditor's shares responsibility for the audit report. Which of the following represents Cristin's most appropriate response? O If the parent company auditors elect not to reference the component auditor in the audit report, then the parent company audit firm assumes full responsibility for the contents of the audit report. O The component auditor shares full responsibility for the audit report issued by the parent company's auditor. This is because the financial statements of the parent company include the subsidiary. O The parent company auditors and the component company auditors typically preemptively determine a percentage of responsibility and subsequent liability in the event of future litigation. O The component auditor has no responsibility for the audit report under any circumstances. The component auditor is simply engaged to report on the financial condition of the subsidiary.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Explain your answer
Janine and Cristin are discussing the work of component auditors one day while sitting in the campus cafeteria. Janine mentions to Cristin that she is not sure to what extent the component auditor's shares responsibility for the audit report. Which of the following represents Cristin's most appropriate response? O If the parent company auditors elect not to reference the component auditor in the audit report, then the parent company audit firm assumes full responsibility for the contents of the audit report. O The component auditor shares full responsibility for the audit report issued by the parent company's auditor. This is because the financial statements of the parent company include the subsidiary. The parent company auditors and the component company auditors typically preemptively determine a percentage of responsibility and subsequent liability in the event of future litigation. O The component auditor has no responsibility for the audit report under any circumstances. The component auditor is simply engaged to report on the financial condition of the subsidiary.
Transcribed Image Text:Janine and Cristin are discussing the work of component auditors one day while sitting in the campus cafeteria. Janine mentions to Cristin that she is not sure to what extent the component auditor's shares responsibility for the audit report. Which of the following represents Cristin's most appropriate response? O If the parent company auditors elect not to reference the component auditor in the audit report, then the parent company audit firm assumes full responsibility for the contents of the audit report. O The component auditor shares full responsibility for the audit report issued by the parent company's auditor. This is because the financial statements of the parent company include the subsidiary. The parent company auditors and the component company auditors typically preemptively determine a percentage of responsibility and subsequent liability in the event of future litigation. O The component auditor has no responsibility for the audit report under any circumstances. The component auditor is simply engaged to report on the financial condition of the subsidiary.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Code of Ethical Conduct and Its Interpretations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS