Final answer:
The correct answer is option C) Must decide whether to refer to the audit of a component auditor in the auditor's report on the group financial statements.
Step-by-step explanation:
The group engagement partner is responsible for overseeing the entire audit process and ensuring that the audit is conducted in accordance with applicable auditing standards. One important decision that the group engagement partner must make is whether or not to refer to the audit of a component auditor in the auditor's report on the group financial statements. This decision is encapsulated in option C: The group engagement partner must decide whether to refer to the audit of a component auditor in the auditor's report on the group financial statements.
However, it's important to note that the group engagement partner does not share joint responsibility with management for the fairness and accuracy of the financial statements, as management's primary role is to prepare the financial statements.
The auditor's role is to provide an opinion on whether the financial statements are free of material misstatement, whether due to fraud or error.