Lando Corporation is a domestic company with two wholly owned domestic subsidiaries Michaels, CPA, has been engaged to audit the financial statements of the parent company and one of the subsidiaries and to act as the group auditors Thomas, CPA, has audited financial statements of the other subsidi...

a When a component auditor exists the group engagement partner should determine whether sufficient a ...

Lando Corporation is a domestic company with two wholly owned domestic subsidiaries. Michaels, CPA, has been engaged

Question:

Lando is a domestic company with two wholly owned domestic subsidiaries. Michaels, CPA, has been engaged to audit the of the parent company and one of the subsidiaries and to act as the group auditors. Thomas, CPA, has audited of the other subsidiary. Michaels has not yet decided whether to make reference to the audit of Thomas.
a. What audit procedures should Michaels perform with respect to the component auditor, regardless of whether Michaels decides to make reference to Thomas in the report?
b. What modifications are made to the if Michaels decides to make reference to the audit of Thomas?

Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
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