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Hello Mr Mike,
Hope you are well 🙂
Suppose there is a parent company with 3 subsidiaries A,B,C. We are the auditor of all the companies except subsidiary C.
The component auditor of subsidiary C, issues a qualified “except for” opinion.
We as the group auditor review their audit report and understand that their audit report is WRONG and in our opinion the report should be something else. (for example an adverse opinion or a clean report or …)
Then what should we do If the component auditor does NOT accept to correct their report??
Thank you in advance,
Kind RegardsNumber 1 – determine materiality in the context of the group as a whole
Number 2 – get the component auditor to justify their opinion
3 – consider whether that justification is valid (presumably not) and go from there.
It may be that you issue an unqualified opinion where the component auditor gave “except for” or “adverse” on the basis that their justification didn’t impress you and, in the context of the group as a whole, even though there may be an element of lingering doubt, you could nevertheless yourself justify your own opinion.
After all, it’s your opinion ultimately that counts
Number 1 : Thank
Number 2 : You
Number 3 : Very muchAfter all, “Thank You Very Much” ! 🙂
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