As per AAS 12, the responsibility of joint auditor has mentioned and on the basis of this standard, joint auditors should become the responsible of their duty.
Who are Joint Auditors
When two or more auditors audit the accounts of a single organisation and share their responsibility regarding audit, then these two or more auditors will be joint auditor. Two audit firms can also become joint auditors.
In AAS 12, following are the responsibilities of Each Joint Auditor
1. First of all, whole audit work is divided among joint auditors. Division of work may on the basis of area, or identified units. It can also on the basis of total assets, liabilities and incomes and expenses. Joint auditors can also divide who audit work in time period. Some time will be for one auditor of same company's audit and other time period is for other auditor for audit of same company.
Each auditor will responsible for his performed work. He will not responsible for other auditor's performance because division of work is done already.
2. If any audit work will not divide among joint auditors. All auditors are responsible for undivided audit work.
3. If there is the branch audit and audit is done branch auditors and its report is given to one of joint auditors. Still, then all joint auditors will be responsible for verifying the report. Because each joint auditor has right to get separate report of branch audit. One this basis, he can give his reviews and opinion. So, he can not save his responsibility by saying, he did not study the branch audit report.
4. Presentation by Management may be given to one of joint auditor. Before getting written letter and review, joint auditor can also share this responsibility, otherwise each joint auditor is responsible for taking any joint auditor's decision on the information which is provided by management.
Why has AAS 12 been made?
Reason of making AAS 12 is very simple. Two different nature auditors have joined for joint auditor. If there is any wrong decision which is taken by any investor. Two auditors will start to blame on each other. Issue can go to court. At that time, court will decide the responsibility on the written text of Auditing and Assurance standard 12. So, to write is important. You should also learn all the responsibilities. I have just tried to simplified in above text.
Who are Joint Auditors
When two or more auditors audit the accounts of a single organisation and share their responsibility regarding audit, then these two or more auditors will be joint auditor. Two audit firms can also become joint auditors.
In AAS 12, following are the responsibilities of Each Joint Auditor
1. First of all, whole audit work is divided among joint auditors. Division of work may on the basis of area, or identified units. It can also on the basis of total assets, liabilities and incomes and expenses. Joint auditors can also divide who audit work in time period. Some time will be for one auditor of same company's audit and other time period is for other auditor for audit of same company.
Each auditor will responsible for his performed work. He will not responsible for other auditor's performance because division of work is done already.
2. If any audit work will not divide among joint auditors. All auditors are responsible for undivided audit work.
3. If there is the branch audit and audit is done branch auditors and its report is given to one of joint auditors. Still, then all joint auditors will be responsible for verifying the report. Because each joint auditor has right to get separate report of branch audit. One this basis, he can give his reviews and opinion. So, he can not save his responsibility by saying, he did not study the branch audit report.
4. Presentation by Management may be given to one of joint auditor. Before getting written letter and review, joint auditor can also share this responsibility, otherwise each joint auditor is responsible for taking any joint auditor's decision on the information which is provided by management.
Why has AAS 12 been made?
Reason of making AAS 12 is very simple. Two different nature auditors have joined for joint auditor. If there is any wrong decision which is taken by any investor. Two auditors will start to blame on each other. Issue can go to court. At that time, court will decide the responsibility on the written text of Auditing and Assurance standard 12. So, to write is important. You should also learn all the responsibilities. I have just tried to simplified in above text.
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