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
Long Term Contracts - Audit Process The authoritative document with reference to long term contracts is IAS 11: Construction Contracts and IAS 18: Revenue Recognition, and ISA

Kevin Black, the sole owner of a small bakery, has been told that the business should have financial statements reported on by an independent auditor. Kevin Black, having some b

Ask quesThe following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Co

Managements interest in the accounting system Management needs complete and accurate books of accounts because: There is no other way the business can be controlled; Rec

Valuation and Allocation - Audit Process As we saw assets are usually valued at cost or a valuation less a provision for usage or loss of value.  We have to ensure therefore t

a) Would King & Queen be liable to EFL? Provide specific case references to support your answer.

Audit Risk and Business Risk We saw in earlier studies that audit risk is often categorized as the product of inherent risk, control risk and detection risk. Auditors should

Principles of Auditors Procedures i. The financial statements should be prepared on the source of conditions existing on the balance sheet date. ii. The material post balance

Basic Elements of a Management Representation Letter Whenever requesting a management representation letter, such the auditor would request which it be addressed to the audi

project report on absorption of overhead and its different method