morgan cpa is the principal auditor for a multinational corporation another cpa has 633597

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Morgan, CPA, is the principal auditor for a multinational corporation. Another CPA has audited and reported on the financial statements of a significant subsidiary of the corporation. Morgan is satisfied with the independence and professional reputation of the other auditor, as well as the quality of the other auditor’s examination. With respect to Morgan’s report on the consolidated financial statements, taken as a whole, Morgan

  1. Must not refer to the audit of the other auditor.
  2. Must refer to the audit of the other auditor.
  3. May refer to the audit of the other auditor.
  4. May refer to the audit of the other auditor, in which case Morgan must include in the auditor’s report on the consolidated financial statements a qualified opinion with respect to the examination of the other auditor.

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