Page 54 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
Discussion: Discuss audit findings or related matters with both the other auditor and the component's
management.
Supplementary Procedures: Decide on any Supplementary Procedures required for the component's records
or financial statements.
Performance of Supplementary Procedures: Determine whether the principal auditor or the other auditor
should perform these supplementary tests.
When other auditor is not a professionally qualified auditor.
Circumstances: Under certain circumstances, an auditor who lacks professional qualifications may be selected.
Foreign Country: This situation arises when a component is situated in a foreign country. The relevant laws
permit the appointment of a non-professionally qualified auditor to conduct the audit of the component's
financial statements.
Importance: In such circumstances, the procedures outlined in above paragraphs assume added importance.
Principal Auditor to document in his working papers
Components: Document components audited by other auditors.
Significance: Record their importance to the entire entity's financial data.
Other Auditors: List the names of the other auditors.
Discussions: Record discussions with the other auditor and review of their written summary.
Procedures & Conclusions: Note down executed procedures and derived conclusions.
Don’t Document: No need to document reasons for limiting procedures if summarised elsewhere.
Non-Material Components: Document conclusions about non-material individual components.
Report Modified: If other auditor's report is modified, document the response to qualifications or adverse
remarks for own report framing.

(CNO-SA600.080) Co-Ordination Between Auditors
1. Sufficient Liaison: Sufficient liaison needed between the principal auditor and the other auditor.
2A. Understanding Context: Principal auditor may issue written communication(s) to the other auditor. The
other auditor should understand the context of his work for the principal auditor.
2B. Advisory: The principal auditor should advise the other auditor of any matters that come to his attention
that he thinks may have an important bearing on the other auditor’s work.
2C. Questionnaire: Principal auditor can request a detailed questionnaire from the other auditor. The other
auditor should provide timely responses.
3. Significant Findings: Other auditor must comply with statutory requirements. Other auditor must bring
significant findings to the principal auditor promptly. Adhere to the audit timetable.

(CNO-SA600.100) Reporting Considerations
Principal auditor to express a qualified opinion or disclaimer of opinion in case of a limitation on the
scope of audit.
Work Cannot Be Used: If the principal auditor determines the other auditor's work is unusable and cannot
conduct additional procedures, a qualified opinion or disclaimer of opinion should be expressed due to scope
limitation.
If the other auditor issues a Modified Report
Modification: If the other auditor issues or plans to issue a modified report, the principal auditor should
evaluate its significance concerning the entity's financial information and decide if their report also requires
modification.

(CNO-SA600.120) Division of Responsibility
Not Responsible: Principal auditor not responsible for other auditors' work unless there's suspicion about the
work's reliability. Suspicion arises if the principal auditor doubts the reliability of work performed by other

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