Question

You have decided to engage a local auditor to audit essential parts of the financial statements....

You have decided to engage a local auditor to audit essential parts of the financial statements. You are the lead auditor. How will the results of your report change?

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Answer #1

The Principal auditor or lead auditor is ultimately responsible for the report provided by the auditor.

The Principal auditor has to state the same in his report that the components or some elements of the financial statement is to be provided by the principal auditor.

The principal auditor has to evaluate the ability of the other auditor while assigning the work & the auditor should also evaluate the procedures followed by the other auditor.

So, if the Principal auditor while evaluating the other auditors report on the essential part of the financial statement has to exercise due dillignece in evaluating the work of the local auditor.

Any Misappropriate opinion by the local auditor will change the result of the report of the lead auditor inappropriate.

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