What are the reporting requirements

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Question - Senarios required below: Biden and Harris Trading is a non-issuer (private) domestic company with two wholly owned subsidiaries. Trump, 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. Pence, 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 Trump is sufficient for serving as the group auditor and to report as such on the financial statements. Trump has not yet decided whether to refer to the part of the audit performed by Pence.

Required -

a. What responsibilities does Trump have with respect to Pence when deciding whether to rely on the work of Pence?

b. What are the reporting requirements with which Trump must comply in naming Pence and referring to the work done by Pence?

c. What report should be issued if Trump does not wish to assume responsibility for Pence's work or refer to Pence's work?

Reference no: EM132969763

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