A group engagement partner decides not to refer to the audit of another CPA who audited a component of the overall group financial statements. After making inquiries about the other CPA’s professional reputation and independence, the principal auditor most likely would
a. Add an emphasis-of-matter paragraph to the auditor’s report indicating that the subsidiary’s financial statements are not material to the consolidated financial statements.
b. Document in the engagement letter that the principal auditor assumes no responsibility for the other CPA’s work and opinion.
c. Obtain written permission from the other CPA to omit the reference in the principal auditor’s report.
d. Perform additional audit procedures based on the significance of the subsidiary.