Marco Ramirez is the partner on the audit engagement of

Marco Ramirez is the partner on the audit engagement of Sun Products, a private company based in New Mexico.

Sun Products manufactures outdoor patio furniture and yard decorations. Sun Products recently acquired another company, Al Aire Libre, which is based in Argentina. Al Aire Libre represents 13% of Sun Products’ assets on the consolidated Al Aire Libre has been audited by an Argentina-based accounting firm for the last five years. Marco and his team decide Al Aire Libre should continue to be audited by the Argentina-based accounting firm.

Required

a. Discuss the factors Marco should consider when deciding whether to refer to the Argentina-based accounting firm in the on the consolidated of Sun Products.

b. If Marco decides not to assume responsibility for the work of the Argentina-based accounting firm, draft the for Sun Products assuming an unmodified opinion is being rendered.

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