Joint Audit

Meaning
Joint audit implies pooling together the
resources & expertise of 2 or more firms to
perform an expert job.
In this more than one firm / individual is
appointed as the statutory auditors of the
company.
 MERITS
Better quality work.

Pooling & Sharing of expertise.

Timely completion of audit

 A. Division of work among the
joint auditor
1. Manner of Division:
a) Mutual discussion.
Documentation : Decision must be documented
& preferably communicated to the entity.
 B. Coordination among the joint auditors
1. Communication: Joint Auditor should
communicate to all others:
• Matters relevant to the areas of responsibility of other Joint
Auditors.
• Matters which deserve their attention.
• Matter that require discussion with, or application of
judgment by, other joint auditors.
2. Pre-Audit Report.
 C. Nature of Responsibility of Joint
Auditors
JOINT AUDITOR SEVERAL AUDITOR
Common areas of work: when the audit work Allocated areas of work: proper allocation of
is not divide. audit work.

For Common Decisions , everyone is Responsibility of each joint auditor:-

responsible. • Study & evaluate the prevailing system of
internal control.
•Determine nature , timing of audit procedure.
•Proper execution of audit procedures.

Management Representations : the Management Representations : its explained,

responsibility as regard obtaining and obtained &shared by each JA for the specific
evaluating information and explanations from zones allotted to them.
the mgmt. is shared by all the JA’s.
Disclosure Matters: to ensure that Fin. Stts. Branch Audit : it is separate resp. of each JA:
Comply with disclosure req. 1. To visit divisions.
Reporting Matters: Audit report compiles with 2. To review allocated branch audit report.
req. of the relevant law.
D. Each JA is entitled to rely on work of another JA .
Not essential to review the work performed by
other JA