Joint audits-advantages-disadvantages, Auditing

Assignment Help:

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.

Related Discussions:- Joint audits-advantages-disadvantages

Auditing, For each ethical threat explain how it might be avoided?

For each ethical threat explain how it might be avoided?

Fraud and error, Fraud and Error ISA 240: the Auditor’s duty to Conside...

Fraud and Error ISA 240: the Auditor’s duty to Consider Fraud and Error defines that whenever planning and performing audit procedures, computing and reporting outcomes thereby

Code of ethics for auditor, Fitri, a sole proprietor in pulic practice, pla...

Fitri, a sole proprietor in pulic practice, plans to establish a separate department that will provide internal audit service to his audit clients.

Case study and report, Assessment item 2 Case Study and Report Due date: 19...

Assessment item 2 Case Study and Report Due date: 19-08-2016 Length: 2000 words Task Question 1 (5%) Case: Battersby and Associates Chartered Accountants is a successful mid-t

Materiality, how to calculate materiality given the acoountin period inform...

how to calculate materiality given the acoountin period information

All of the following must certify that a public company''s, All of the foll...

All of the following must certify that a public company's financial statements are accurate, complete, and not misleading, except for the Chief financial officer. Director of human

Joint auditing, what is the role of a joint auditor

what is the role of a joint auditor

Need for an audit, Need for an Audit Whether you take an example for a...

Need for an Audit Whether you take an example for a modern large liability company, such we can clearly differentiate between those who control those funds the providers of fu

Plant and machinery - valuation and authorization, Plant and Machinery - Va...

Plant and Machinery - Valuation and Authorization Valuation Valuation is at depreciated historic costs. Auditor's duty is to make sure that the accounting policy for dep

Classification of management representations, Classification of Management ...

Classification of Management Representations The thing to note is which during the course of the audit the auditor obtains various representations from the management which ca

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages