Page 268 - CA Inter Audit PARAM

CA Ravi Taori

QNO Principal auditors right to perform audit procedures New Course-- (SM25/M24E)
600.50
CA. Dicky Yadav is auditor of a company having four branches. The four branches are audited by another
auditor CA. Yamini Jain. The reports in respect of accounts of branches examined by her have already
been sent to company auditor. During the course of audit, CA Dicky Yadav asks the branch auditor to
share with her summary of audit procedures and findings in respect of accounts of branches examined.
CA. Yamini Jain feels it as encroachment of her domain. Discuss the issue.

OR
Mr. L is a principal auditor of OP Ltd. There are several divisions of OP Ltd. that are audited by other
auditors. State the procedures Mr. L should ordinarily perform to obtain sufficient and appropriate audit
evidence that the work of other auditors is adequate for the principal auditor's purpose in the context
of this assignment.
Answer Some Evidence for Other Auditor's Work:
If it requires that the 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.

• Coordination and Planning: Advise the other auditor of the use that is to be made of the other
auditor's work and report and make sufficient arrangements for co-ordination of their efforts at
the planning stage of the audit.

• Informing Matters to Other Auditor: The principal auditor would inform the other auditor of
matters such as are requiring special consideration, procedures for the identification of
intercomponent transactions that may require disclosure, and the time-table for completion of
audit.

• Significant Requirements Communication: Advise the other auditor of the significant accounting,
auditing, and reporting requirements and obtain representation as to compliance with them.

• Discussion and Review of Procedures: The principal auditor might discuss with the other auditor
the audit procedures applied or review a written summary of the other auditor's procedures and
findings which may be in the form of a completed questionnaire or checklist.

• Visiting the Other Auditor: The principal auditor may also wish to visit the other auditor.

So It is not an encroachment of another auditor’s domain

QNO Sec-143 (8) - Company Auditor access to branch records audited by Old Course-- (P16M/N20E)
CoAud.73 different auditor
Bhaskar CNO - CA.360

RJ Limited is in the business of trading of cycles having Head Office at Delhi and branch at Mumbai.
Statutory audit of Head Office was to be done by CA D and statutory audit of branch at Mumbai was to
be done by CA M. During the course of audit by CA D at head office, CA D Wanted to visit branch at
Mumbai and verify the inventory records at Mumbai. The management of RJ Limited did not allow CA
D to visit Mumbai office and verify the inventory records as the branch audit of Mumbai was already
being undertaken by another CA M.
In the above situation, discuss the rights available with CA D in terms of the Companies Act, 2013.
Answer Part I -- Relevant Standards & Laws
▪ Section 143(1)/143(8) of the Companies Act, 2013
Part II -- Requirements of Relevant Standards & Laws
➢ Section 143(1) of the Act provides that the auditor of a company, at all times, shall have a right of
access to the books of account and vouchers of the company, whether kept at the registered
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