Using the Work of another Auditor
dWhen the main
auditor uses the work of another auditor, he should determine how the
work of the other auditor will affect his auditing assignment. main Auditor means the auditor who has the prime responsibilities
for reporting on the financial statements of an entity when the
financial information includes financial information of one or more
components audited by another auditor.
Another auditor means an auditor, other than the main auditor,
with responsibility for reporting on the financial information of a
component which is included in the financial information audited by the main auditor.
Component of an entity means and include any division, branch,
subsidiary, associated enterprises, joint ventures or any other entity
whose financial information is include in the financial information
audited by the main auditor.
In some circumstances, the law of the land empowers the main
auditor powers to visit an element and to examine the books and papers
of accounts
and other information, records of the said element, if he thinks it is
necessary
to do. Where other auditors have been auditing the element, the main
auditor is normally has the right, and is justified, to rely on
the work of such
auditors unless there are special conditions which compel him to
visit the element and/or examine the books of accounts and other
records of the particular element.
When planning to include the work of an auditor in his auditing plans,
the main auditor should consider the professional competence of
the other auditor in the context of specific assignment if the other
auditor is not the member of the same professional body to which the main auditor belongs.
The main auditor may discuss with the other auditor the auditing
procedures applied by him while auditing the component. The main
auditor may even request the other auditor for a written summary of the
auditing procedures followed by him and should always consider the
significant findings of the other auditor.