Final answer:
The correct statement is that the group engagement partner will likely spend less time if the component auditor has a good reputation, as this indicates a lower risk of material misstatement, reducing the need for close supervision.
Step-by-step explanation:
The correct statement regarding the time a group engagement partner will spend is: 3) The group engagement partner will spend less time if the component auditor has a good reputation. In an audit situation, the involvement of the group engagement partner tends to vary based on several factors associated with the component auditor and the component being audited. If a component auditor has a well-established and good reputation, along with a history of producing quality work, the group engagement partner might determine that there is less risk of material misstatement and therefore may spend less time on that portion of the audit. Conversely, if a component is deemed to be at high risk of material misstatement or if the component auditor is unfamiliar to the group engagement partner, possibly with no prior working relationship, the group engagement partner might decide to spend more time on that area of the audit.