Responsibility Of Joint Auditors – SA 299 (Standards On Auditing)

What does Joint Auditor mean ?

When two or more practicing unit are appointed for conducting an audit of an entity, these practice units are said to be Joint Auditors

Joint auditors are normally appointed in large entities where the large volume of work is to be performed

Division Of Work

Joint auditors should divide the work among themselves on the basis of –

• Time (for eg :- work can be divided in quarters or months)
• Functional Areas
• Components of Financial Statements (for eg :- verification of assets, checking of debtors, liabilities etc)
• Geographical location ( for eg :- regional branches)

These divisions should be documented adequately.

Reliance is to be kept by the joint auditors on other Joint auditors work. There is no need to review the work done by the other Joint Auditor.

Co-ordination

If some joint auditor comes to know a matter, relevant for other Joint auditors, then he should communicate the same immediately to other joint auditors in writing. The date of such communication should be before the date of audit report.

Responsibility

Seperate Responsibility of each Joint Auditor

• For work allocated to him
• For maintaining appropriate documentation
• For components allocated to him in case of entities having many components
• For drafting his audit program

Joint and Several Responsibility of all Joint Auditors

• For work which has not been divided
• Where collective desicions have been taken w.r.t. nature,timing and extent of audit procedures
• Matters brought to knowledge of all by one of them and on which they all agree
• Disclosure requirements in Financial Statements
• Compliance of audit report with statutory requirement.

If there is any difference of opinion and the one’s who disagree with the others, may provide their own opinion through a seperate report as any joint auditor is not bound to agree by the majority opinion.

Responsibility Of Joint Auditors – SA 299 (Standards On Auditing)

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