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SAS
No. 15 Using the Work of Another Auditor |
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 Status |
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Revised by Auditing Standards Committee in Taiwan on
2
November, 1999. |
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Summary |
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When the principal auditor uses the work of another auditor, the
principal auditor should determine how the work of the other auditor
will affect the audit. “Principal auditor” means the auditor with
responsibility for reporting on the financial statements of an
entity when those financial statements include financial information
of one or more components audited by another auditor. “Other
auditor” means an auditor, other than the principal auditor, with
responsibility for reporting on the financial information of a
component which is included in the financial statements audited by
the principal auditor. |
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When planning to use the work of another auditor, the principal
auditor should:
l
Consider the professional competence of the other auditor in the
context of the specific assignment.
l
Advise the other auditor of the independence requirements regarding
both the entity and the component and obtain written representation
as to compliance with them.
l
Advise the other auditor of the use of the other auditor’s work and
report and make sufficient arrangements for the coordination of
their efforts at the initial planning stage of the audit. The
principal auditor would inform the other auditor of matters such as
areas requiring special consideration, procedures for the
identification of intercompany transactions that may require
disclosure and the timetable for completion of the audit.
l
Advise the other auditor of the accounting, auditing and reporting
requirements and obtain written representation as to compliance with
them.
l
Consider the significant findings of the other auditor. |
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The principal auditor might also, for example, discuss with the
other auditor the audit procedures applied, review a written summary
of the other auditor’s procedures (which may be in the form of a
questionnaire or checklist) or review working papers of the other
auditor. The principal auditor may wish to perform these procedures
during a visit to the other auditor. The nature, timing and extent
of procedures will depend on the circumstances of the engagement and
the principal auditor’s knowledge of the professional competence of
the other auditor. This knowledge may have been enhanced from the
review of previous audit work of the other auditor. |
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If the auditor’s report is based partially on the reports of the
other auditor yet the principal auditor does not intend to divide
the responsibility, the principal auditor will not need to make
reference to the other auditor when issuing the audit report.
However, if the principal auditor wishes to divide the
responsibility, the principal auditor should state this fact clearly
and should indicate in the introductory, scope and opinion
paragraphs. |
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If the other auditor issues, or intends to issue, a modified
auditor’s report, the principal auditor would consider whether the
subject of the modification is of such a nature and significance, in
relation to the financial statements of the entity on which the
principal auditor is reporting, that a modification of the principal
auditor’s report is required. |
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When the principal auditor concludes that the work of the other
auditor cannot be used and the principal auditor has not been able
to perform sufficient additional procedures regarding the financial
information of the component audited by the other auditor, the
principal auditor should express a qualified opinion or disclaimer
of opinion because there is a limitation in the scope of the audit. |
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 Effective
date
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This Statement is effective from 31 December, 1999. |
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