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Rowe & Myers audits the financial statements of Dunbar Electronics. During the audit, Rowe & Myers engaged Jones & Abbot, a Canadian public accounting firm,
Rowe & Myers audits the financial statements of Dunbar Electronics. During the audit, Rowe & Myers engaged Jones & Abbot, a Canadian public accounting firm, as a component auditor to audit Dunbars wholly owned Canadian subsidiary.
Required:
a. Should Rowe & Myers make reference to the component auditor in its audit report? Explain.
b. Assume that Jones & Abbott issued a qualified report on the Canadian subsidiary. Should Rowe & Myers include the same qualification in its report on Dunbar Electronics?
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