The report on the estimation of reserves for the biggest bauxite deposits in the world was examined by Nazim Kali, the in-charge auditor of Valo, a Brazilian mining corporation. Brazilian citizens as well as scientists and environmentalists have sharply criticized Valo's mining intentions.

Another multinational public accounting firm's local auditors had to be used for the bauxite operations. Lori Lake, the group engagement partner, met with Nazim to go over how much trust their company would be placing in the component auditors. She was worried that there wasn't enough support for the component auditor's judgments. The consolidated statements of Valo include the financial statements that the component auditors are currently auditing in considerable detail.

Tasks:

- What part does Nazim play in evaluating the bauxite deposits expert's report?

- What responsibility does Nazim and his company have before deciding to engage the services of another auditor?

- What will be the engagement partner's responsibility after the task has been delegated to a component auditor by her company?