ASA 600 - Using the Work of Another Auditor - April 2006
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Introduction
4 The purpose of this Auditing Standard is to establish mandatory requirements and to provide explanatory guidance when an auditor, reporting on the financial report of an entity, uses the work of another auditor on the financial information of one or more components included in the financial report of the entity. This Auditing Standard does not deal with those instances where two or more auditors are appointed as joint auditors nor does it deal with the auditor’s relationship with a predecessor auditor. Further, when the principal auditor concludes that the financial report of a component is immaterial, the mandatory requirements in this Auditing Standard do not apply. When, however, several components, immaterial in themselves, are together material, the procedures outlined in this Auditing Standard would need to be considered.
5 When the principal auditor uses the work of another auditor, the principal auditor shall determine how the work of the other auditor will affect the audit.
6 “Principal auditor” means the auditor with responsibility for reporting on the financial report of an entity when that financial report includes financial information of one or more components audited by another auditor.
7 “Other auditor” means an auditor, other than the principal auditor, with responsibility for reporting on the financial information of a component which is included in the financial report audited by the principal auditor. Other auditors include affiliated firms, whether using the same name or not, and correspondents, as well as unrelated auditors.
8 “Component” means a division, branch, subsidiary, joint venture, associated company or other entity whose financial information is included in the financial report audited by the principal auditor.