5.5 work of another adtr

Question 1

Using work of another adtr

Answer 1

1. when the group engagement partner( who will sign audit report) will rely on the work of another adtr to provide evidence on certain components of the FS
2. occurs when the the client operates in numerous locations or has significant assets in numerous locations

Question 2

Using work of another adtr (before acceptance)

Answer 2

1. audit engagement team should consider capacity to undertake the audit
2. should consider the proportion of FS assigned to the component adtr
3. group engirt team should audit the majority of the fs and should be knowledgeable about the components of the FS assigned to the component adtr

Question 3

Using work of another adtr (consideration)

Answer 3

1. capacity , reputation of the other audit team
2. work completed by other auditor meets the requirement and stds such objectivity

Question 4

Using work of another adtr (process)

Answer 4

1. both adtrs will discuss the detailed procedures to be used and group engmnt partner will review at the main conclusion drawn from work of the component auditor
2. grp engmnt partner will spend more time on the review if the components are at high risk of MM
3. less time if competent auditor has a good reputation and has done a previous audit work for the group engment team .

Question 5

Using work of another adtr (conclusion)

Answer 5

1. group engment team will use evidence provided by the component adtr when forming their opinion on the fs

2.group engment team having concern//discuss finding with component auditor and its implication with clients mgt

3. if group engment team finds MM impacting fs then will issue modified opinion

4.If the group engagement partner is concerned with not having gathered sufficient appropriate audit evidence regarding the component of the FS being audited, will ask that further evidence be gathered.

5.If the component auditor cannot access sufficient evidence, the engagement partner will consider issuing a modified audit opinion due to a scope limitation.

6.This will occur when the group engagement partner is unable to obtain additional evidence on the elements of the component audited by a component auditor.