Final answer:
The division of responsibility in an auditor's report necessitates changes to the introductory paragraph to reflect the shared or divided responsibilities among different auditors. It is critical for the auditor's report to accurately depict each firm's roles for transparency in financial reporting.
Step-by-step explanation:
When considering the division of responsibility in an auditor's report, it is important to note that the introductory paragraph would indeed be modified. The division of responsibility refers to situations where more than one auditing firm participates in the audit of a group's financial statements. In such cases, the introductory paragraph typically mentions the responsibilities that are shared or divided among the different auditors.
If we are to evaluate whether a given statement about the auditor's report is true or false, a clear understanding of auditing standards is required. For example, if the statement is that the introductory paragraph remains unchanged even when there is a division of responsibility, this would be false. The correct statement is that the paragraph will be modified to reflect the shared responsibility among the auditors.
Evidence-based practices in auditing require that the auditors' report accurately reflect the nature of the joint effort and the extent of the audits conducted by each firm. Thus, facts about responsibilities, the division of work, and the scope of each auditor's report are critical for transparency and accountability in financial reporting.