Final answer:
A component auditor can audit a component or subsidiary of the parent company.
Step-by-step explanation:
The statement is True. A component auditor, which is a different accounting firm, can indeed audit a component or subsidiary of the parent company. This type of auditing is known as a component audit or a subsidiary audit. It involves the examination of the financial statements and internal controls of the component or subsidiary.
For example, if a multinational corporation has several subsidiaries in different countries, each subsidiary may be audited by a different accounting firm specializing in the country's regulations and requirements. This ensures a comprehensive and independent evaluation of the financial performance and compliance of each component or subsidiary.