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For an audit involving multiple components in different geographies, the engagement partner should ensure that:
AConsistent overall audit strategy is communicated to all component teams and component performance materiality is set appropriately
BComponents operate independently with no group strategy
CEach component issues its own audit opinion
DComponent audit firms must be the same as the principal
Answer & Solution
Correct answer: A. Consistent overall audit strategy is communicated to all component teams and component performance materiality is set appropriately
1. SA 600(R) requires a coherent group audit strategy with calibrated component materiality.
2. Components do not issue standalone opinions on the group FS.
3. Component auditors may be different firms with proper coordination.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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