Page 272 - CA Inter Audit PARAM

CA Ravi Taori
Explain stating the other relevant considerations in this regard with reference to the Standards on Auditing.
Answer ➢ Prior to the commencement of the audit, the joint auditors shall discuss and develop a joint audit plan.
In developing the joint audit plan, the joint auditors shall:

Consider the results of preliminary engagement activities and, where applicable, whether
knowledge gained on other or similar engagements performed earlier by the respective
engagement partner(s) for the entity is relevant.
Identify division of audit areas and common audit areas amongst the joint auditors that
define the scope of the work of each joint auditor;
Ascertain the nature, timing and extent of resources necessary to perform the engagement.
Consider and communicate among all joint auditors the factors that, in their professional
judgment, are significant in directing the engagement team’s efforts;
Ascertain the reporting objectives of the engagement to plan the timing of the audit and
the nature of the communications required;

Responsibility- Co-ordination between Joint Old Course-- (P16M/N17E/SM17/SM20/SM21/N22E)
QNO Auditors- Master Answer New Course – (J25M)
299.05
Bhaskar CNO - SA299.060/ SA299.080
A Joint Auditor is not bound by the views of the majority of the joint auditors regarding matters to be
covered in the report. Justify this statement in the light of responsibilities of Joint Auditors under SA 299.
OR
Short Notes on Joint Audit

OR

In Joint Audit, Each Joint Auditor is responsible only for the work allocated to him.

OR

Write a short note on responsibilities of Joint auditors.

OR

HMB Limited's business has grown from one state of India to various countries of the world. Since the
business has increased manifold, the management decided to appoint joint auditors for conducting the
statutory audit of the company. They appointed three CA firms for it. For which audit work the joint
auditors will be jointly & severally responsible?
Answer ➢ Main features of the said SA are discussed below

Specific Responsibilities
• In respect of audit work divided among the joint auditors, each joint auditor shall
be responsible only for the work allocated to such joint auditor including proper
execution of the audit procedures.
• It shall be the responsibility of each joint auditor to determine the nature, timing
and extent of audit procedures to be applied in relation to the areas of work
allocated to said joint auditor. It is the individual responsibility of each joint auditor
to study and evaluate the prevailing system of internal control and assessment of
risk relating to the areas of work allocated to said joint auditor

Joint Responsibilities
All the joint auditors shall be jointly and severally responsible for:
The audit work which is not divided among the joint auditors and is carried out by all joint
auditors;
• Decisions taken by all the joint auditors under audit planning in respect of
common audit areas concerning the nature, timing and extent of the audit
procedures to be performed by each of the joint auditors.
• 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;
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