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
Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

The Accounting System ISA 400 Risk Assessment and Internal Control accounting system are the sequence of tasks and records of an entity by which transactions are procedure as a

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

describe how the auditors would determine that all investments income from shares had been properly recorded in the accounting records


The Use of Engagement Letters There is a contractual relationship among an accountant and his client. The accountant must therefore make sure that at the time he decided to exe

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

Question : (a) Describe the following terms: 1) Forensic Accounting; 2) Forensic Investigation; 3) Forensic Auditing. (b) Explain the basic elements to consider for

The Department of Higher Education (DoHE) in the Ministry of Education awarded a contract for support of 60 computers to My IT Co. Ltd. and the contract conditions required the del

The Tonka Manufacturing Company conducts its annual physical inventory at the end of the calendar year as a result of the auditor's assessment of non-operating internal controls in