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The opinion section of a group auditor's report contains the following sentences: We did not audit the financial statements of EZ, Inc., a wholly owned

The opinion section of a group auditor's report contains the following sentences: "We did not audit the financial statements of EZ, Inc., a wholly owned subsidiary, which statements reflect total assets and revenues constituting 27% and 29%, 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 EZ, Inc., is based solely on the report of the other auditors." The presence of these sentences in the group audit report indicates that the group auditor has verified the component auditor's: Independence or competency

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