Joint audits-advantages-disadvantages, Auditing

General advantages and disadvantages of joint audits

Advantages:

  • All work and fees are welcome to audit firms.
  • An opportunity to closely inspect the auditing methods of another firm.
  • The other firm may have special expertise which might fit well in a joint business.
  • The other firm may have geographical location possibilities which complement.
  • The other firm may be of such a size that a client company can be serviced which may otherwise be beyond available resources.
  • Flexibility of working arrangements with another firm may avert bottlenecks owing to staff shortage at peak times.

 

Disadvantages:

  • Shared legal responsibility. Liability for co-auditor's negligence.
  • Lack of control. The other firm may have different audit standards which may be unsatisfactory.
  • Any shared work or responsibility may lead to personality clashes.

 

Posted Date: 12/4/2012 5:44:06 AM | Location : United States







Related Discussions:- Joint audits-advantages-disadvantages, Assignment Help, Ask Question on Joint audits-advantages-disadvantages, Get Answer, Expert's Help, Joint audits-advantages-disadvantages Discussions

Write discussion on Joint audits-advantages-disadvantages
Your posts are moderated
Related Questions
Matters of Audit Process Another matter to be covered as: 1. Accounting policies: these should be uniform all over the group and should be properly disclosed. 2. Consoli


You are just appointed as the Trainee Accountant of the Compaq Computing Sdn Bhd - the newly established company. The manager is facing difficulties in maintaining the manual accou

Bank - Cash and Bank Balances The major concern in this area is to establish the existence of the balances and more currently due to failures in some financial institutions in

With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.

State four factors considered determining sufficiency of audit evidence

Auditors Procedures Before Stock Taking 1) Study of the clients stock taking recommendations and instructions for improvements or changes whether the auditor considers them in

Management Representations as a Source of Audit Evidence International Standard on Auditing as abbreviated ISA 580 Management Representations gives guidance and standards on t

Q. Corporations generally issue stock dividends in order to a. increase the market price per share. b. exceed stockholders' dividend expectations. c. increase the marketability of

Judgmental Sampling Judgment sampling is where the auditor using his own experience and knowledge of the client's business and circumstances selects the sample to be tested wi