Page 38 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

SA 299

JOINT AUDIT OF FINANCIAL STATEMENTS

Introduction
Definition of Joint Audit: A joint audit is the audit of a company's financial statements conducted by two or
more auditors. The auditors, known as joint auditors, are appointed with the aim of issuing an audit report.
Voluntary or Mandatory: The practice of appointing joint auditors has been in place for a long time. This can
be a voluntary action taken by the shareholders or can be necessitated by laws or regulations.
SA 299: SA 299 provides the principles for conducting a joint audit effectively.

(CNO-SA299.020) Objectives in accordance with SA 299 (Why/Purpose)
(Shortcut: BURA)
The objectives in accordance with SA 299 are as under: -
Broad Principles: To lay down broad principles for the joint auditors in conducting the joint audit.
Uniform Approach: To provide a uniform approach to the process of joint audit.
Responsibilities: To identify individual responsibility and joint responsibility of the joint auditors in relation
to audit
Areas of Work and Coverage: To identify the distinct areas of work and coverage thereof by each joint auditor.

(CNO-SA299.040) Joint Audit planning
1A. Joint Planning: The engagement partner and other key members of the engagement team from each joint
auditor should jointly establish the overall audit strategy, including the scope, timing, and direction of the audit.
1B. Preliminary Engagement activities: Consideration of the results from preliminary engagement activities is
essential. Additionally, the auditors should determine if knowledge from previous or similar engagements by the
respective engagement partner is relevant.
2A. Division of Audit Areas: Joint auditors should identify and divide audit areas among themselves, defined
by identifiable units or specified areas. In situations where division isn't feasible due to the business's nature, it
may be based on items of assets, liabilities, income, or expenditure. However, certain significant areas may not
be divided and should be covered by all joint auditors.
2B. Resource Planning: The auditors should identify the nature, timing, and extent of resources necessary to
carry out the engagement effectively.
2C. Factors significant in directing the engagement team's efforts: All joint auditors should consider and
communicate factors significant in directing the engagement team's efforts based on their professional judgment.
2D. Reporting Objectives: The auditors should ascertain the reporting objectives of the engagement, which will
guide the timing of the audit and the required communication nature.

(CNO-SA299.060) Risk Assessment and Allocation of Work.
1.Common Engagement and Representation: Joint auditors are responsible for obtaining a common
engagement letter and Common management representation letter.
2A. Work Allocation: The tasks among the joint auditors need to be clearly identified, allocated, and
documented. This allocation document should be signed by all auditors and communicated to those charged
with governance.
2B. Dispute Prevention: Documentation and communication of work allocation are critical to prevent potential
disputes or confusion among auditors and between the auditors and the entity.

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