ASA 600 - Using the Work of Another Auditor - April 2006
Acceptance as Principal AuditorAcceptance as Principal Auditor
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Acceptance as Principal Auditor
9 The auditor shall consider whether the auditor’s own participation is sufficient to be able to act as the principal auditor.
10 For this purpose, the principal auditor ordinarily considers:
(a) the materiality of the portion of the financial report which the principal auditor audits;
(b) the principal auditor’s degree of knowledge regarding the business of the components;
(c) the risk of material misstatements in the financial report of the components audited by the other auditor; and
(d) the performance of additional procedures as set out in this Auditing Standard regarding the components audited by the other auditor resulting in the principal auditor having significant participation in such audit.
11 Section 323B of the Corporations Act 2001,[1] provides that the auditor of a controlled entity must give the principal auditor any information, explanation or assistance required under section 323A.