CA Final · Advanced Auditing, Assurance and Professional Ethics · Group Audits
CA Mehta is the auditor of Ganga Textiles Ltd and is deciding whether she can act as principal auditor, since the financial statements include a branch audited by another auditor. Which of the following is NOT one of the matters SA 600 (Using the Work of Another Auditor) asks her to consider in deciding whether her own participation is sufficient?
The number of partners in the other auditor's firm is not a listed consideration. SA 600 asks the principal auditor to weigh materiality of the portion she audits, her knowledge of the components' business, the risk of material misstatement in the other auditor's components, and additional procedures giving significant participation.
- AThe materiality of the portion of the financial information that she audits herself
- BHer degree of knowledge regarding the business of the components
- CThe number of partners in the other auditor's firmCorrect
- DThe risk of material misstatements in the financial information of components audited by the other auditor
Explanation
The text lists four considerations: materiality of the portion she audits, her knowledge of the components' business, the risk of material misstatement in the components audited by the other auditor, and additional procedures giving significant participation. The number of partners in the other auditor's firm is not among them, so it is the correct choice.
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