Summary of SA 600 Using the work of the Another Auditor

Summary of SA 600 Using the work of the Another Auditor

SA 600 Using the work of the Another Auditor

 

1. Purpose: The purpose of this SA is to establish standards to be applied in situations where

an auditor (herein after referred as principal auditor), reporting on the financial information

of an entity, uses the work of another auditor (herein after referred as other auditor) with

respect to the financial information of one or more branches/components included in F.S.

2. The principal auditor Can rely, unless there are special cases.

3. Perform audit procedures: When using such work, the principal auditor should:

a. Advise the other auditor of the use that is going to be made of the other auditor’s work.

b. Inform other auditor areas requiring special consideration, timetable for completion of audit.

c. Advise the other auditor of the significant accounting, auditing and reporting

requirements and obtain representation as to compliance with them.

4. Discussion or questionnaire or meet: The principal auditor may discuss with the other auditor to answer a questionnaire or may also meet the other auditor.

5. The principal auditor may discuss with the other auditor or management affecting the financial information of the components.

6. Supplementary tests: He may also carry out supplementary tests of the F.S. of the branch.

7. Documentation:

a. The principal auditor should document in his working papers the components (Branches)

whose financial statements were audited by other auditors, the names of the other auditors

b. Procedures performed & conclusions reached.

c. Qualifications: Where the other auditor’s report is qualified, the principal auditor

should also document how he has dealt with the qualifications or adverse remarks

contained in the other auditor’s report in framing his own report.

8. Co­ordination between Auditors:

9.Reporting Considerations: Qualification of other auditor, Qualified report ­ Can’t use

10.The principal auditor would not be responsible in respect of the work entrusted to the other auditors, except in circumstances which should have aroused his suspicion about the reliability of the work performed by the other auditors.

View summary for All Standards


File Size: 64.79kb
application/pdf

Now Check This Out

;