Principal Auditor's Procedures:
Principal Auditor's Procedures:
The following procedures are recommended on the part of principal auditor:
1. Advise the other auditor of the use that is to be made of his work and report.
2. The principal auditor should also inform the areas requiring special consideration and the timetable for completion of audit.
3. Advise the other auditor of the significant accounting auditing and reporting requirements.
4. Ascertain from other auditors any limitation on the scope of his work by the terms of engagement.
5. Consider the significant findings of the other auditor.
6. The principle auditor is not required to evaluate the professional competence or independence of other auditor except in doubtful situation,
7. He may require the other auditor to submit responses to a questionnaire regarding the audit work performed.
8. He may discuss with the other auditor and concerned branch official the audit findings affecting the financial statements of the branches.
9. If necessary, he may require that supplementary tests be performed or he may himself perform such tests.
10. In case of foreign branch, the principal auditor should consider the qualification, experience and expertise of the foreign branch auditor.
Documentation:
1. The principal auditor should maintain in his working paper / files the financial statement of the branches, which are audited by other auditor. He should also document the manner in which he has applied the audit procedures and conclusions thereof.
2. When the other auditor has qualified his audit report, the principal auditor should refer in his working paper the manner in which he dealt with the same.
Coordination between Auditors:
1. There should be coordination between the principal auditor and branch auditor so what they can discharge their responsibility effectively.
2. The other auditor should bring to the notice of principal auditor any of his significant findings, adhering to the time scales, ensuring compliance with legal requirements, etc.
3. If the principal auditor requires a specific audit procedure to be carried out or to answer a detailed questionnaire, the other auditor should comply with the same.
Consideration of Report of Other Auditor
1. The principal auditor should qualify or disclaim his opinion when he concludes that he cannot use the work of the other auditor and has not been able to perform sufficient additional procedures with respect to the financial statements submitted by the branch auditor.
2. The principal auditor should consider the qualification of the branch auditor's report in relation to the financial statement of the entity as a whole.
Division of Responsibility:
1. The principal auditor is not responsible for work carried out by the other auditor unless there are doubtful . circumstances
2. The principal auditor's report should clearly state the division of responsibility by indicating the extent to which the financial statement of branches audited by other auditors have been included in the financial statement of the entity e.g. the number of branches / divisions audited by other auditors
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