Question

in the auditor's report, the principal auditor decides not to make reference to another cpa who audited an entity's subsidiary. the principal auditor could justify this decision if, among other requirements, the principal auditor:

Answer 1

If a principal auditor decides to refer to another auditor's audit in a report, he or she must disclose the following: 1) The other auditor's name. 2) The nature of the investigation into the other auditor's professional standing and the extent of the work review

Can an auditor suggest things?

It is not unusual for the auditor to offer suggestions regarding the format and content of the financial statements or even to assist management in drafting them in whole or in part on the basis of information supplied by management.

Is the reference in a review report to work performed by another examiner an extension capability?

The fact that a portion of the audit was performed by a different auditor is not meant to invalidate the opinion in the principal auditor's report; rather, it is meant to show that the auditors who performed the audits of various parts of the overall financial shared responsibility.

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