Today's Topic - Joint Audit

[Revision Series for IPCC audit]

Dear IPCC Student,

 

Exams are approaching.

Time to revise is reducing.

Are you worrying about How to revise the whole syllabus in last 15 days?

 

We have a Solution-

You concentrate on the subjects which you consider vast to revise, & we’ll provide you the revision for Audit.

For these last 15 days, we’ll provide you one topic every day to revise & the manner in which you are required to write the answer.

If you want the discussion on any specific topic, you can mail us & we’ll provide you the tips for the same to revise & remember it fast.

 

For last hour revision of other topics & To revise the whole syllabus in just 5-6 hours, refer to the Book “Revision Series for IPCC - Audit, by CA Gunja Maheshwari”.

About the Book –

·        Covers all points mentioned in the Syllabus as prescribed by ICAI

·        Judicious use of Flowcharts for explaining the concept

·        Easy language to understand, revise & remember the topic fast.

·        Require only 5-6 hours to revise the whole Syllabus of Audit.

 

Today’s Topic –

 

Joint Audit

(As now, you have got the idea of how to proceed to write the answer for different marks, we’ll now provide answers only for a 8 marks Q, which you can short out yourself if the same asked for less marks)

 

According to SA 299, when more than one Chartered Accountant (or Firms) is Appointed to Audit a single Entity, it is called as Joint Audit. Joint Auditors have collective responsibility to report on Financial Statements. Auditors are required to present a single Audit Report except in case of disagreement on the matters contained in the Audit Report. SA 299 deals with nature & extent of division of work, relationship & coordination among Joint Auditors.

Thus Joint Audit is rendered in order to pool the Resources & Expertise of more than one Audit Firm. It is required to render an Expert Job in a given period of time, which may be difficult to accomplish individually.

 

Advantages –

1.      Sharing of expertise of different Auditors

2.      Providing mutual consultation among Auditors without depending on any outsider

3.      Works get distributed among Auditors, thus lowering the work load

4.      Joint Audit provides better quality of Performance and improved Services to the Entity

5.      In case of the takeover of the Company, displacement of Auditor can be avoided.

6.      It is beneficial in case of the detailed & lengthy work

7.      Lower staff deployment cost

8.      Lower cost to carry out the work, as the work is performed faster in the same cost.

9.      Provide Better Performance as expertise of different Auditors is employed.

 

Disadvantages –

1.      Audit fees get shared between the Joint Auditors.

2.      It creates the problem of Mutual Understanding between the persons/ firms.

3.      It may create the Superiority complex among the Auditors.

4.      Sometimes it may lead to lack of coordination.

5.      The work of common nature may get neglected.

6.      There will always be the uncertainty of the Liability of the work done.

7.      Responsibility of each Auditor cannot be specifically distinguished.

 

Joint Auditors are responsible for the work which is not divided among them, for the decisions mutually taken by the Auditors, for examination of Financial Statements regarding disclosure requirements of the Statute, for ensuring the compliance with relevant Statute.

 

(If you remember the SA number or name than only mention, don’t mention the wrong number; in that case just mention the concept as according to the standards of auditing.

Firstly explain the meaning according the related SA, than explain the meaning in general and then describe the advantages & disadvantages & then give the concluding sentence.)

 

                                                                                                              

Best Wishes,

‘Revision Series for IPCC’ Team

 

 

 

 

[Revision Series for IPCC audit]

[Revision Series for IPCC audit]

[Revision Series for IPCC audit]

Dear IPCC Student,

 

Exams are approaching.

Time to revise is reducing.

Are you worrying about How to revise the whole syllabus in last 15 days?

 

We have a Solution-

You concentrate on the subjects which you consider vast to revise, & we’ll provide you the revision for Audit.

For these last 15 days, we’ll provide you few topics every day to revise & the manner in which you are required to write the answer.