Final answer:
When significant portions of the audit are performed by another auditor, the original auditor reviews their work and issues a dual opinion in the audit report.
Step-by-step explanation:
When significant or material portions of the audit are performed by another auditor, the original auditor needs to review their work to ensure it is accurate and reliable. The original auditor will then include the work of the other auditor in their audit report. This is typically done by issuing dual opinions, where the original auditor expresses an opinion on the financial statements as a whole and another opinion on the work of the other auditor.
The dual opinion may be represented with separate paragraphs in the audit report or through qualified or adverse opinions. A qualified opinion indicates that the financial statements are fairly stated except for the effects of the matter for which the other auditor was responsible. An adverse opinion suggests that the financial statements are not fairly stated due to the matter for which the other auditor was responsible.
In summary, when another auditor performs significant portions of the audit, the original auditor will review their work and issue a dual opinion in the audit report to reflect the efforts of both auditors.