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Let’s understand in detail about Standard on Auditing SA 600 Using the Work of Another Auditor 

  1. Definition
  2. Acceptance as Principal Auditor
  3. Principal Auditor’s Procedures
  4. Co-ordination between the Auditors
  5. Reporting Considerations
  6. Division of Responsibility

Introduction to SA 600 Using the Work of Another Auditor




SA 600 Using the Work of Another Auditor deals with the responsibility of the principal auditor in relation to the use of work of other auditors

Effective Date

Applicable for all audits related to accounting periods beginning on or after April 1, 2002

Compatibility with ISA

This standard is generally consistent and compatible with International Standard on Auditing 600


Does not cover instances where two or more auditors are appointed as joint auditor and relationship with predecessor auditor


This standard will not apply where the financial information of a component is immaterial and applies when several immaterial components are together material to the entity’s financial information as a whole

1. Definition

I. Principal Auditor – “Auditor with the responsibility for reporting on the financial information of an entity when that financial information includes the financial information of one or more components audited by another auditor”

II. Other Auditor– “Auditor other than the principal auditor, with the responsibility for reporting on the financial information of a component which is included in the financial information audited by the principal auditor”

III. Component – “A division, branch, subsidiary, joint venture, associated enterprises or other entity whose financial information is included in the financial information audited by the principal auditor”

Note:  “When the principal auditor uses the work of another auditor, the principal auditor should determine how the work of another auditor will affect the audit”

2. Acceptance as Principal Auditor

Auditor to decide whether the auditor’s own participation is sufficient to be able to act as the principal auditor with the following consideration:

i. The materiality of the portion of the financial information

ii. The degree of knowledge regarding the business of the components

iii. Risk of material misstatements of the components audited by the other auditor

iv. Performance of audit procedures per this SA regarding the components audited by the other auditor in which the principal auditor has significant participation

3. Principal Auditor’s Procedures

I. Consider the professional competence of the other auditor who is a not a member of ICAI in the context of the specific assignment

II. Perform procedures to obtain sufficient appropriate audit evidence that the other auditor’s work is adequate for the principal auditor’s purpose. Principal auditor to follow the below-mentioned procedures:

a. Advise the end-use of the other auditor work and report

b. Co-ordinate efforts at the planning stage

c. Inform the other auditor of areas requiring special consideration

d. Procedure for identification of inter-component transaction for disclosure

e. Time-table of audit completion

f. Significant accounting, auditing, and other requirements

g. Obtain representation for compliance

III. Discuss audit procedures applied by the other auditor or review written the summary of the findings in the form of questionnaire or checklist.

IV. Nature, timing, and extent of procedures depend upon the engagement and principal auditor’s understanding of the other auditor’s professional competence.

V. Consider the significant findings of the other auditor

VI. Discuss the audit findings or other matters with the other auditor and the management.

VII. Decide if supplemental test of the records or financial statements if necessary

VIII. If the other auditor is a person other than a professionally qualified auditor, then this standards guideline assumes more importance

IX. The principal auditor working paper should mention about the financial statements components audited by the other auditor (with the name) and its significance

X. Document the procedures performed and conclusions reached

XI. If the other auditor’s report is modified, then how qualifications or adverse remarks was dealt by the principal auditor in framing final report. 

4. Co-ordination between the Auditors

I. There should be sufficient liaison (through written communication) between the principal auditor and other auditors

II. Other auditors should coordinate with the principal auditor knowing the context in which the work to be used

III. The principal auditor should advise the other auditor of any relevant matters that comes to principal auditor’s attention

IV. The principal auditor may require the other auditor to answer detailed questionnaire required for discharging duties

V. Another auditor has to respond to such questionnaires on a timely basis

5. Reporting Considerations

If the principal auditor is of the opinion that the work of the other auditor cannot be used and the principal auditor is not able to perform sufficient additional procedures for that component, then a qualified opinion or disclaimer of opinion has to be given.

If the other auditor issues or intends to issue a modified auditor’s report, then the principal auditor should consider if it requires modification to the principal auditor’s report based on the nature & significance of the subject of modification.  

6. Division of Responsibility

Principal auditor is not responsible for other auditor’s work except that in case of any suspicion arises about the reliability of the other auditor’s work.

The principal auditor should clearly state the division of responsibility by indicating the extent, to which the information audited by the other auditor has been relied upon in forming an opinion on the entity’s financial statement as a whole.

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