Final answer:
B) Then the portion of the client audited by all component auditors can be aggregated together and expressed as one-dollar amount or percentage
When multiple component auditors audit various subsidiaries, the work can be aggregated and expressed as a whole, maintaining the integrity of the audit report. The aggregation allows for a cohesive audit opinion on the entire entity's financials.
Step-by-step explanation:
If more than one component auditor was used to audit multiple subsidiaries, then the portion of the client audited by all component auditors can be aggregated together and expressed as one-dollar amount or percentage. This allows the principal auditor to present a unified picture of the financial health of the entire entity, even though different auditors may have been responsible for different geographic regions or divisions of the company.
The component auditors’ work will feed into the overall audit process and the conclusions drawn by the principal auditor, who takes responsibility for the audit opinion on the group's financial statements. The integrity of the audit report is not diminished simply because multiple auditors were involved in the process as long as proper audit standards were followed throughout.
Therefore, the correct answer to the question is B) Then the portion of the client audited by all component auditors can be aggregated together and expressed as one-dollar amount or percentage. Control risk assessment or reliability of the audit report is contingent upon the adherence to audit standards rather than the plurality of auditors involved.