Question：Soon after the year end, Tickall & Co, the group auditors of the Minigroup group of companies, submit their standard group audit questionnaire to the auditors of each subsidiary and associated company. On reviewing the response from Arthur Old & Co, the auditors of BRS, a subsidiary of Minigroup, they note that the auditors did not attend any of the client's annual inventory counts which were held simultaneously at each of the company's five retail outlets; the auditors state that there is no intention, at the time of completing the questionnaire, to modify their report.

　　Tickall & Co consider that BRS's inventory is material in the context of the group accounts. Which of the following additional procedures should Tickall & Co carry out?

　　Should they?

　　A. Arrange to carry out additional tests in conjunction with Arthur Old & Co to confirm the existence of inventories.

　　B. Request to review the audit working papers of Arthur Old & Co in respect of the audit of inventories.

　　C. Carry out tests at BRS independent of Arthur Old & Co so as to form an independent opinion as to the existence of inventories.

　　D. Request that Arthur Old & Co conduct further work to confirm the existence of inventories.

　　The correct answer is: Request to review the audit working papers of Arthur Old & Co in respect of the audit of inventories.

　　解析：Arthur Old & Co have sole responsibility for forming the opinion on the accounts of BRS and for the manner in which they carry out their audit. The group auditors should not normally need to re-perform the component auditors' work. Since Arthur Old & Co do not intend to modify their report, it would appear that they may have gained sufficient audit assurance on inventories by some means other than inventory count attendance. If Tickall & Co are uncertain as to how Arthur Old & Co conducted work sufficient to confirm the existence of inventories, they should ask to review their working papers.

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