Refer to Exhibit 15.3 and the Why It Matters feature Differing Guidance on Referring to Other Auditors. How do the requirements for referring to other auditors differ between U.S. auditing standards and the ISAs?

Exhibit 15.3 Example of an Excerpt from an Unqualified Audit Report with Explanatory Language Indicating the Division of Responsibility and Making a Reference to the Other Auditors: PCAOB Audit NOTE: The format of the audit report depends on the auditing standards the auditor is following. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of X Company (the "Company") and subsidiaries as of December 31, 20...., and the related consolidated statements of (titles of the financial statements, e.g., income, comprehensive income, stockholders' equity, and cash flows) for the year then ended, and the related notes (and schedules) (collectively referred to as the "consolidated financial statements). In our opinion, based on our audit and the report of the other auditors, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of (at] December 31, 20...., and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. We did not audit the financial statements of B Company, a wholly-owned We did not audit the financial statements of B Company, a wholly-owned subsidiary, which statements reflect total assets and revenues constituting 20 percent and 22 percent, respectively, of the related consolidated totals. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for B Company, is based solely on the report of the other auditors. Source: PCAOB Release No. 2017-001, June 1, 2017 Why It Matters Differing Guidance on Referring to Other Auditors for Group Audits This feature notes that auditing standards differ in their guidance on referring to other auditors in the audit report. Similar to the PCAOB standards (see Exhibit 15.3), AU-C 600 allows the auditor's report to include a reference to another auditor. In contrast, ISA 600 does not permit the auditor's report to make reference to another auditor, unless required by law or regulation. The relevant terminology in the auditing standards refers to a group audit in which a group audit opinion is issued. The term group refers to all the nomnananthoshnan finannial information in inchoand in the women Auditors for Group Audits ers AAAA This feature notes that auditing standards differ in their guidance on referring to other auditors in the audit report Similar to the PCAOB standards (see Exhibit 15.3), AU-C 600 allows the auditor's report to include a reference to another auditor. In contrast, ISA 600 does not permit the auditor's report to make reference to another auditor, unless required by law or regulation. The relevant terminology in the auditing standards refers to a group audit in which a group audit opinion is issued. The term group refers to all the components whose financial information is included in the group financial statements. A group always has more than one component. A component is an entity or business activity for which group or component management prepares financial information that is required by the applicable financial reporting framework to be included in the group financial statements. If the group engagement partner decides to assume responsibility for work of a component auditor, no reference should be made to the component auditor in the auditor's report on the group financial statements