GeneralGeneral

General

23 When the principal auditor concludes that the work of the other auditor cannot be used and the principal auditor has not been able to perform sufficient additional procedures regarding the financial information of the component audited by the other auditor, the principal auditor shall issue a modified auditor’s report because there is a limitation in the scope of the audit.

24 The principal auditor has sole responsibility for the opinion expressed on a consolidated financial report. If, having examined the financial reports and auditor’s reports of components for which the principal auditor has not acted as auditor, the principal auditor is not satisfied that the financial reports of any of these components are in form or content appropriate for the purpose of the preparation of a consolidated financial report, or if the principal auditor has not received satisfactory information and explanations to form such opinion, under ASA 701 Modifications to the Auditor’s Report, the principal auditor needs to modify the auditor’s report on the consolidated financial report.

25 When the other auditor issues, or intends to issue, a modified auditor’s report, the principal auditor shall consider:

(a) the nature and significance of the modification, in relation to the financial report of the entity on which the principal auditor is reporting; and

(b) whether a modification is also required to the principal auditor’s report, under ASA 701 Modifications to the Auditor’s Report.

Reference to Another Auditor in the Auditor’s Report

26 The principal auditor shall not refer to the work of another auditor in an auditor’s report unless required by legislation or as part of a modification.

27 Such a reference may be misunderstood to be a modification of the auditor’s opinion or a division of responsibility, neither of which is intended.