Exposure Draft of “Revised SA 299 on Joint Audits” issued by ICAI for Comments from Members
Large entities follow the practice of appointing more than one auditor (i.e. joint auditors) to conduct the audit either voluntarily or due to compliance requirements mandated by law. Such joint auditors conduct the audit jointly and normally issue a joint audit report on the financial statements of the entity.
“Standards on Audit (SA)- 299 relating to Joint Audits” issued by the ASB of ICAI lays down the broad principles for effective conduct of joint audit to achieve the overall objectives of the auditor as laid down in SA 200 relating to “Overall Objectives of the Independent Auditor and the conduct of an audit in accordance with Standards on Auditing”. Besides, SA 299 is aimed at providing uniform approach to the process of joint audit; clear identification of distinct areas of work and coverage there of by each joint auditor to arrive at a common audit report; identification of individual responsibility and accountability of each of the joint auditors in regard to areas covered by them and to enable identification of situations which would lead to joint responsibility and accountability of all joint auditors.
SA 299 deals with the special considerations in carrying out audit by Joint Auditors. Accordingly, in addition to the requirements enunciated in SA 299, the joint auditors also need to comply with all the relevant requirements of other applicable Standards on Auditing (SA).
It may be noted that SA 299 does not deal with the relationship between a principal auditor who is appointed to report on the financial statements of an entity and another auditor who is appointed to report on the financial statements of one or more component (divisions, branches, subsidiary, joint venture, associates, other entity) included in the financial statements of the entity.
Accordingly, the ICAI has issued exposure draft of revised SA 299 for comments by the Members latest by 11 Aug. 2017.