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CA Final · Advanced Auditing, Assurance and Professional Ethics · Group Audits

CA Raman is asked to act as principal auditor of Sundaram Textiles Ltd, some components of which are audited by other auditors. Under SA 600, which of the following is a matter he must consider in deciding whether his own participation is sufficient?

He must consider the materiality of the portion of financial information he audits himself. This is the first of the matters SA 600 lists for judging whether his participation is enough to act as principal auditor. Firm size, fees and the other auditor's years in practice are not listed.

  1. AThe materiality of the portion of the financial information which he himself auditsCorrect
  2. BThe size of the other auditor's firm in terms of number of partners
  3. CThe audit fee agreed with the other auditor
  4. DThe number of years for which the other auditor has been in practice

Explanation

SA 600 lists four matters for acceptance as principal auditor, and the first is the materiality of the portion of the financial information audited by the principal auditor. Firm size, fee level and years in practice are not among the listed matters, so the other options are wrong.

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