JOINT AUDITORS
Division of Work :
The joint auditors should divide the audit work in anyone of the following basis:
1. Components of financial statements
2. Geographical location
3. Functional areas and activities
4. Period basis
The division of work among joint auditors should be adequately documented and communicated to the entity.
Coordination among Joint Auditors:
Where a company auditor comes across matters, which are relevant to the areas of responsibility of their joint auditors, he should communicate it immediately to the other joint auditors to discharge himself of the responsibility.
Relationship among Joint Auditors:
Each joint auditor is responsible for the work allocated to him. However, in respect of following areas, all the joint auditors are jointly and severally responsible.
1. Audit work not divided among joint auditors and carried out by all of them.
2. Matters, which are brought to the knowledge of joint auditors by one of them and on which there is an agreement among the joint auditors.
3. Collective decisions taken by joint auditors such as the decision regarding the nature, extent and timing of the audit procedures to be carried out.
4. Compliance and disclosure requirements as per statute.
In case the information is brought to the other joint auditors by an auditor after submission of the audit report, the other joint auditors would not be responsible for such matter.
Each joint auditor is responsible for drafting his own audit programme and determine nature, extent of checking etc.
Each joint auditor should keep appropriate working papers, which enables him to come to a conclusion regarding the financial statements.
In the case of audit of a large entity with several branches. In such a case, it is the separate responsibility of each joint auditor to review the reports of the branches allotted to him and to ensure that they are properly incorporated into the accounts of the entity.
In respect of branches, which do not fall under any division or zone, which were separately assigned to different joint auditors, they may agree among themselves regarding the division of work relating to such branch returns.
Each joint auditor is entitled to rely upon the work carried by other joint auditors. It is not necessary for a joint auditor to review the work performed by other joint auditors or perform any tests to ascertain whether the work has actually been performed in accordance with generally accepted audit procedures.
If one of joint auditors also carries out the audit of branches or other division of the entity, the joint auditors. are entitled to rely upon the work carried out by him, unless the other joint auditor specifically brings out any material discrepancy.
Reporting Responsibilities:
Where the joint auditors are in disagreement with regard to any matter, each one of them should express his own opinion through a separate report. The joint auditor is not bound by the views of the majority of joint auditors regarding matters to be covered in the report.
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