Skip to main content
Responsibilities of Joint Auditors:
The concept of Joint audit is very common in Nationalized banks. The standard does not deal with the relationship between a principal auditor who is appointed to report on the financial statements of an entity and another auditor who is appointed to report on the financial statements of one or more divisions or branches included in the financial statements of the entity. Such as Relationship between the Principal auditor and Branch auditor. 
Joint Auditors:
Practice of appointing more than one auditor to conduct the audit of large entities. Such auditors, known as Joint Auditors. Joint Auditors conduct audit jointly & report on the financial Statements.      
                                                               Example : Reliance Industries Limited has three auditors namely Chaturvedi & Shah, Deloitte Haskins & Sells LLP, Rajendra & Co. These three audit firms conduct audit of Reliance Industries Limited. So Above three audit firms are known as Joint Auditors.
Responsibilities of Joint Auditors:
                                                                 Each Joint Auditor is responsible only for the work allocated to him. On the other hand, all the joint auditors are jointly and severally responsible –
1. In respect of Undivided work.
2. Nature, timing or extend of audit procedures. Every auditor is responsible for determining the nature, timing or extend of audit procedures pertaining to his area. However consider a case where Inventories was audited by Joint auditor and all the joint auditors were mutually decided the audit procedures to be followed for inventory for that particular joint auditor. Now the other joint auditors will be responsible only for the judgment of the audit procedures relating to inventory. How the audit procedures have been implemented will be responsibility only of that particular joint auditor who has been allocated inventory.
3. All the joint auditors responsible for compliance with disclosure requirement. ie. Notes on accounts
4. Audit report should be as per the statutory requirements. This is the common responsibility of every joint auditor.
5. Any significant matter which was uncovered by a particular joint auditor and which was made known to all the other joint auditors will be a common responsibility of all of them.

Comments

Post a Comment

Popular posts from this blog

What are the limitations of assurance?

5.What are the limitations of assurance? Ans: The fact that testing is used The fact that accounting systems have inherent limitations  Audit evidence is persuasive rather than conclusive    Assurance provide would not test every items in the subject matter     Subjective and professional matter Use estimates               
Post a Comment
Read more

Cost concept & Cost classifications

Cost concept Cost is "a foregoing, measured in monetary terms, incurred or potentially to be incurred to achieve a specific objective" (American Accounting Association). Cost refers the monetary measure of the amount of resources given up or used for some specified purpose. It is the value the goods or services expended to obtain current or future benefits. All types of organizations incurred costs─governmental, not-for-profit, manufacturing, retail and service. Generally the kinds of costs that are incurred and the way in which these cost are classified depend on the type of organization such as─ manufacturing merchandising, and service.              Cost Classifications Costs can be classified in different ways. There are manufacturing costs and non-manufacturing costs, direct and indirect costs, product and period costs, fixed and variable, sunk and opportunity costs, etc. Management accountants need to understand cost...
Post a Comment
Read more

Basic elements of Auditor’s Report

Basic elements of Auditor’s Report The auditor's report should incorporate the following elements in it. They are - Title Addressee Identification of the financial statements audited A reference to the auditing standards,practices followed Expression or disclaimer of opinion on tje financial statement Signature Auditor's address The date of the report 
1 comment
Read more