Page 41 - CA Final PARAM Digital Book.

whether or not he has made a separate report on the work performed by him. On the other hand, the
joint auditors are jointly and severally responsible in respect of the audit conducted by them as under:
• in respect of the audit work which is not divided among the joint auditors and is carried out
by all of them;
• in respect of decisions taken by all the joint auditors concerning the nature, timing or extent
of the audit procedures to be performed by any of the joint auditors;
• in respect of matters which are brought to the notice of the joint auditors by any one of them
and on which there is an agreement among the joint auditors;
• for examining that the financial statements of the entity comply with the disclosure
requirements of the relevant statute.
• for ensuring that the audit report complies with the requirements of the relevant statute.
• it is the separate and specific responsibility of each joint auditor to study and evaluate the
prevailing system of internal control relating to the work allocated to him, the extent of
enquiries to be made in the course of his audit;
• the responsibility of obtaining and evaluating information and explanation from the
management is generally a joint responsibility of all the auditors;
• each joint auditor is entitled to assure that the other joint auditors have carried out their part
of work in accordance with the generally accepted audit procedures and therefore it would
not be necessary for joint auditor to review the work performed by other joint auditors.
1 1
Before finalizing their Audit Report:

1a
1a

J.A shall Discuss and
Communicate with other
J.A s their respective
conclusions
2 2
Audit Report

3 3 4 4
Agreement with regard to the opinion: Disagreement with regard to the opinion:

JA is not bound by views of the majority regarding opinion or
4a
4a
matters to be covered in the audit report
Common audit report In case of disagreement in opinion or any matters to be covered
4b by the audit report, they shall express their opinion in a
4b
separate audit report.
Audit report by other J.As (Combined) shall make a reference to
the separate audit report,
4c
4c
Separate audit report shall also make reference to Audit report
by other J.As (Combined)
Such reference shall be made under the heading Other Matter
4d
4d
Paragraph as per Revised SA

SA Normally, the joint auditors are able to arrive at an agreed report. However, where the joint
auditors are in disagreement with regard to any matters to be covered by the report, each one of
them should express their own opinion through a separate report. A joint auditor is not bound by the
views of majority of joint auditors regarding matters to be covered in the report and should express
his opinion in a separate report in case of a disagreement.
Case I
Part III -- Facts
➢ In the instant case, there are three auditors, namely, Mr. X, Mr. Y and Mr. Z, jointly appointed as an
auditor of KRP Ltd. For the valuation of gratuity scheme of the Company they referred their own
known Actuaries. Mr. Z (one of the joint auditors) is not satisfied with the report submitted by Mr. Y’s

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