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RELIANCE ON OTHER AUDITORS UNITED STATES PRACTICE by Raymond E. Perry The auditor's report on the financial statements of a business is sometimes based on the work of more than one auditor. In the typical situation one of the auditors, called the primary auditor, assumes the responsibility for issuing an audit report based, in part, on work performed by one or more secondary auditors. The primary auditor may or may not refer to the secondary auditor in his report, depending on the circumstances of the engagement. The employment of a secondary auditor may be initiated by either the primary auditor or the management of the company. The secondary auditor's work may be a complete examination in accord with generally accepted auditing standards or it may involve only specified and limited procedures. For example, the secondary auditor may be employed to audit an autonomously operated subsidiary company, or he may be employed merely to observe the taking of a physical inventory. In most cases the accounts audited by the secondary auditor will be combined or consolidated with the accounts audited by the primary auditor, and the financial statements audited by the secondary auditor will not appear separately in the report. This is usually the case when the secondary auditor is employed to verify specific accounts at distant locations, or to audit a consolidated subsidiary or unincorporated division. At other times the secondary auditor may be employed to audit the accounts of an unconsolidated subsidiary, in which case the financial statements of that subsidiary would be presented in the report separately from those of the parent company and any consolidated subsidiaries. Secondary auditors are most often engaged in either of two situations. A business may employ a secondary auditor when it has operations located at a distance from the closest office of the primary auditor—whether in the primary auditor's country or in a foreign country. 6
Object Description
Title |
How to protect your EDP records |
Author |
Levine, Richard A. |
Subject |
Electronic data processing Records retention |
Citation |
Tempo, Vol. 14, no. 3 (1968, September), p. 06-13 |
Date-Issued | 1968 |
Source | Originally published by: Touche, Ross, Bailey & Smart |
Rights | Copyright and permission to republish held by: Deloitte |
Type | Text |
Format | PDF page image with corrected OCR scanned at 400 dpi |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi Library. Accounting Collection |
Date-Digitally Created | 2010 |
Language | eng |
Identifier | Tempo_1968_September-p6-13 |