Final answer:
Making reference to the work of component auditors by the current auditors does not always result in a qualified opinion; it depends on the materiality of the component and the satisfaction of the group engagement team with the component auditors' work.
Step-by-step explanation:
When the current auditors make reference to the work of the component auditors, it does not necessarily result in the expression of a qualified opinion. The correct answer is 'c) It depends on the materiality of the component'.
The group engagement team evaluates the work of the component auditors, and if they conclude that the work is sufficient and appropriate for their purposes, they may make reference to the component auditor in their report without qualifying their opinion.
However, if the group engagement team is not satisfied with the work done by the component auditor or if the component is materially misstated and the issue is not resolved, it could lead to a modification in their report, which might be a qualified opinion or even a disclaimer or adverse opinion, depending on the nature and extent of the misstatement.
correct answer: c) It depends on the materiality of the component.