Audits of Group Financial Statements

Audits of Group Financial Statements. The firm of Anderson, Olds, & Watershed (AOW) is the group auditor for the December 31, 2014, consolidated financial statements of Ferguson Company and subsidiaries. However, component auditors perform the work on certain subsidiaries for the year under audit amounting to 29% of total assets and 36% of total revenues. AOW investigated the component auditors, as required by auditing standards, and they furnished AOW their reports. AOW has decided to rely on their work and to refer to the component auditors in their report. None of the audit work revealed any issues with respect to Ferguson Company or its subsidiaries.

Required:

Draft AOW’s report.

 

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