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Lando Corporation is a nonissuer domestic company with two wholly owned subsidiaries. Michaels, CPA, has been engaged to audit the financial statements of the parent

Lando Corporation is a nonissuer domestic company with two wholly owned subsidiaries. Michaels, CPA, has been engaged to audit the financial statements of the parent company and one of its subsidiaries and to serve as the group auditor. Thomas, CPA, has audited the financial statements of the other subsidiary whose operations are material in relation to the consolidated financial statements.

The work performed by Michaels is sufficient for serving as the group auditor and to report as such on the financial statements. Michaels has not yet decided whether to refer to the part of the audit performed by Thomas.

What responsibilities does Michaels have with respect to Thomas when deciding whether to rely on the work of Thomas?

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