Para 25 of sa600 states that relying upon the statements and reports of other auditor – Report should state division of responsibilty


In that case if division of responsibility is there, Para 12 of sa 200
“principal auditor should perform procedures to obtain sufficient appropriate audit evidence, that the work of the other auditor
is adequate for the principal auditor’s purposes, in the context of the specific assignment”
Is applicable or not

7 answers

Audit Staff September 11, 2017

In division of responsibility of auditor know that the other auditor cannot perform work to rely on him than he has to apply further audit procedures. Relying on work performed by other Auditor is a judgmental decision. And if he uses division of responsibility by relying on the work of another Auditor than he is not responsible for it subject to inclusion of Other matter paragraph in his audit report and with SAAE

Audit Staff September 11, 2017

To rely on work performed by him

Audit Staff September 11, 2017

Thank you Shubham
My question is
if para 25 is used , whether para 12 is applicable

Audit Staff September 11, 2017

i.e if he want divide the responsibilty , will he still responsible to obtain other representations

Audit Staff September 11, 2017

Yes he has to comply with other procedures as specified in SA600 such as planning audit with another auditors, specifying the instructions to them and have the supplement test on significant findings of another Auditor. Wlcm manikanta bro

Audit Staff September 11, 2017

For ur gesture

Ravi Staff September 12, 2017

SA 200 gives us basic principles we should use while performing audit. now it says be careful while relying on work of another auditor obtain sufficient and appropriate evidence before relying.
Now SA 600 elaborates this point and explain how to get sufficient and appropriate evidence in these circumstances. so sa 600 specifies following principles 
–Accept position of principle auditor only when you are doing major and critical part
–Play active roll in planning and co-ordination
–Carefully evaluate misstatements reported by other auditors
–Specify in report about division of responsibility
so SA 600 is not contradicting with SA 200 it is simply elaborating who to obtain sufficient and appropriate evidence and mentioning in audit report will give users better understanding of matter


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