Views of ICAI on Joint Audit
If the size of the organization is very large, two or more chartered accountants may be appointed as Joint Auditors.
‘Statements on the Responsibilities of Joint Auditors’ (SAP -12) issued by the ICAI discusses about the relationship, responsibility and co-ordination of the work of Joint Auditors.
The views of ICAI on Joint Audit are summarized below:
1. The Joint Auditors shall discuss about the nature of work and mutually decide upon the work of each joint auditor in terms of identifiable units (branch, departments, etc.,) if possible. If not, the work may be divided with reference to period of time, assets, liabilities, income, expenditure, etc.
2. The area of work divided among the joint auditors may be documented and communicated to the organization.
3. The following matters may be communicated in writing by one joint auditor to another, before the finalization of the audit.
- matters which deserve the attention of the other joint auditor.
- matters which are relevant to or related to the area of work of the other joint auditor.
- matters which require disclosure.
- matters which require discussion with the other joint auditors.
- matters which require application of judgement by other joint auditors.
Responsibilities of Joint Auditors
1. One should keep in mind that the Joint Auditors are responsible in respect of the appropriateness of the decisions concerning the nature, timing or the extent of the audit procedure agreed upon among them.
2. Each joint auditor is individually responsible for the proper execution of the audit procedures.
Each joint auditor is specifically responsible for the following—
1. In relation to the area of work allotted to the joint auditor, each joint auditor is specifically responsible for using the appropriate test checks or sampling tests.
2. Each joint auditor is specifically responsible for evaluating the internal control system relating to the work allocated to him.
3. Each joint auditor has to decide upon the nature, timing and extent of the enquiries to be made by him during the audit.