Reliance on the work of other auditors, Auditing

Reliance on the Work of Other Auditors

The principal auditor or the primary auditor is solely responsible for the holding company's accounts. So here it is inevitable but that in large groups the holding company's auditor therefore the principal auditor are not forever the auditors of the subsidiary company, consequently, there is require for them to rely on the work of another auditors. The student have to notice such the principle auditors are fully responsible for their view on the group accounts and necessitate not for this cause refer in their report to the fact that the accounts of some associated or subsidiary company have been audited through another firms. I refer you to the following significant topics covered in the ISA. Availability of information, accounting policies, scope of work of the secondary auditors or another auditors, the materiality of the amounts included. Whether the principal auditor is satisfied so then the accounts present a fair and true view and comply along with the Companies Act the auditor will be capable to issue a an unqualified audit report. But qualification will be essential in the following circumstances.

1. The material subsidiary whether qualified so that there may be require for this qualification to be noticed in the holding company's report.

2. Failure through the principal auditor to acquire satisfactory information along with regard to material amounts or material subsidiary that has been consolidated from an audited account.

3. Material disagreement along with any of the consolidation calculations.

4. Non-compliance along with legal or professional requirements as far as disclosure is concerned.

Posted Date: 1/28/2013 4:59:39 AM | Location : United States







Related Discussions:- Reliance on the work of other auditors, Assignment Help, Ask Question on Reliance on the work of other auditors, Get Answer, Expert's Help, Reliance on the work of other auditors Discussions

Write discussion on Reliance on the work of other auditors
Your posts are moderated
Related Questions
Discontinued Operations - Audit of Accounting Estimates A discontinued operation is a component of an entity that either has been disposed of or is held for sale. So it might

Ownership and Existence - Verification Procedures Establishment of title and beneficial ownership of investments is not convincingly possible. Conversely, evidence is obtainab

Case Study: Hide-It (HI), a family-owned business based in Tombstone, Arizona builds custom homes with special features, such as hidden rooms and hidden wall safes. Hide-It has

Contents of Working Papers - Audit The ISA 230 No.3 stresses which audit working papers may always be adequately complete and detailed to enable an experienced auditor along w

You have been assigned to carry out a stock take in a company. Your Audit Supervisor has given you with an audit programme. As part of a briefing session to your juniors, you a

Internal audit is an independent assessment function which is recognized by the management of an company for the review of its internal control system as a service to the company.

Business Risk Approach This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the c

Tangible Non Current Assets The verification approach is fundamentally similar in each of these.  Extensive disclosure is utilized in most countries and IAS 16 Property Equipm

This charter defines the mission, independence and objectivity, scope and responsibilities, authority, accountability and standards of the Internal Audit function. A charter i

Investment - Audit Process The investment is held for wealth generation that as interest and dividends on shares and capital growth and loan notice.  Recent investments are re