The auditor’s responsibility section of a nonpublic company’s 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.
These sentences
a. Indicate a division of responsibility.
b. Assume responsibility for the other auditor.
c. Require a departure from an unmodified opinion.
d. Are an improper form of reporting.