SA 600

Using the work of another auditor

Meaning
Principal Auditor (PA)- Statutory auditor of company/ firm, etc Another Auditor(AA)- Auditor of component of company/ firm, etc !omponent- "t includes #ranch, su#sidiary, di$ision, associate enterprise, %oint $enture etc of company/ firm, whose financial information is audited #y PA

Applica#ility & 'on-Applica#ility of this Standard

(here PA uses work of AA as regards a component ')* applica#le in case of %oint auditors ')* applica#le as regards relationship with predecessor auditor

Points to #e kept in mind when accepting appointment as PA

Materiality of financial information of !ompany PA+s knowledge regarding #usiness of component ,isk of misstatement in financial information of component forwarded #y AA to PA Performance of additional procedure #y PA of component

Procedure to #e followed #y PA & his duties

*o consider professional competence of AA if he is not a mem#er of "!A" especially in case component is situated in a foreign country *o perform additional procedure to gather information that the work of auditor is ade-uate *o ad$ise AA as regard his duties of audit & areas re-uiring special consideration

 *o impress upon AA for regular coordinate & communication with PA *o gi$e AA check list & to ask him to complete -uestionnaire which will help PA in timely & appropriate completion of audit of company *o fi. a time ta#le for completion of audit of component with AA

/ocuments to #e kept #y PA
/ocuments as regards component audited #y AA and their significance to financial information of company as a whole Procedure performed #y AA, conclusion reached and their materiality ,esults of discussion with AA, re$iewing of -uestionnaire completed #y AA

/uties of AA
!ompliance with statutory re-uirement Adhering to time ta#le set out for audit of component !ommunicating and interacting with PA at regular inter$als 0i$ing ade-uate information in -uestionnaire "nforming PA immediately a#out significant findings ,eporting ade-uately

,eporting #y PA
PA should consider significant finding of AA PA should state in his report of his responsi#ilities indicating e.tent to which financial information of component included in his report "f in case PA was not a#le to either use AA+s work or a#le to perform properly additional procedure regarding financial information of component, PA should -uality his report or disclaim responsility as regards component

 "f in case AA modifies his earlier report, PA should also modify his report accordingly, if significant

THANK YOU
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