SA 600 Using the Work of Another Auditor — Principal Auditor Procedures
## SA 600: Principal Auditor Using the Work of Another Auditor
When an entity has divisions, subsidiaries, or branches audited by auditors other than the principal auditor, SA 600 governs how the principal auditor relies on that work.
### Core Obligation
The principal auditor must obtain sufficient appropriate audit evidence that the other auditor's work is adequate for the principal auditor's purposes.
### Procedures to Perform
1. At the Planning Stage — Coordination
Advise the other auditor of how their work and report will be used
Make arrangements for co-ordination at the planning stage
Inform the other auditor about:
Areas requiring special consideration
Procedures for identifying inter-component transactions requiring disclosure
Time-table for completion of audit
2. Accounting, Auditing, and Reporting Requirements
Advise the other auditor of significant accounting, auditing, and reporting requirements
Obtain a representation from the other auditor confirming compliance with these requirements
3. Review of Other Auditor's Work
The principal auditor may:
Discuss audit procedures applied by the other auditor
Review a written summary of procedures and findings (e.g., completed questionnaire or checklist)
Visit the other auditor if warranted by circumstances
### Key Principle
Using the work of another auditor does not reduce the principal auditor's responsibility for the overall audit opinion — hence the need for active verification of the other auditor's adequacy.
Worked example
### Example 1
OP Ltd. (RTP Sep 2024): Mr. L is principal auditor of OP Ltd., which has several divisions audited by other auditors. To rely on the other auditors' work, Mr. L should: (1) At planning stage, inform each other auditor how their work will be used, co-ordinate efforts, share the time-table, and flag areas needing special attention. (2) Provide other auditors with the significant accounting and reporting requirements applicable and obtain their written confirmation of compliance. (3) Review summaries of each other auditor's procedures and findings through questionnaires, checklists, or direct discussion. (4) Consider visiting the other auditors if the complexity or risk of those divisions warrants it.
⚠️ Common exam mistakes
Assuming the other auditor's report alone is sufficient without any further verification — SA 600 requires active procedures by the principal auditor
Waiting until after the audit fieldwork to communicate requirements to other auditors — co-ordination must happen at the planning stage
Not obtaining a representation from the other auditor confirming compliance with accounting and auditing requirements
Overlooking inter-component transactions when co-ordinating the division of audit work between principal and other auditors
Bare-Act text Procedures of Principal Auditor · SA 600 – Using the Work of Another Auditor · click to expand
The principal auditor should perform procedures to obtain sufficient appropriate audit evidence that the work of the other auditor is adequate for the principal auditor's purposes. The principal auditor should ordinarily: (i) advise the other auditor of the use that is to be made of the other auditor's work and report and make sufficient arrangements for co-ordination of their efforts at the planning stage of the audit, informing the other auditor of matters such as areas requiring special consideration, procedures for the identification of inter-component transactions, and the time-table for completion of audit; (ii) advise the other auditor of the significant accounting, auditing and reporting requirements and obtain representation as to compliance with them; (iii) discuss with the other auditor the audit procedures applied or review a written summary of the other auditor's procedures and findings, which may be in the form of a completed questionnaire or check-list.