# SA 600 – Using the Work of Another Auditor & Branch Audit
## SA 600 – Core Principle
When the auditor (Principal Auditor) uses work performed by other auditors, he remains responsible for the opinion on the FS.
However, he is entitled to rely on the work of others, provided he:
Exercises skill and care, AND
Is not aware of any reason to believe he should not so rely.
## Principal Auditor's Procedures
To obtain SAAE that the work of the other auditor is adequate:
Advise the other auditor of the use of his work and make arrangements for coordination at the planning stage, including:
Procedures for identification of inter-component transactions for disclosure.
Areas requiring special consideration.
Timetable for completion of the audit.
Advise the other auditor of significant accounting, auditing and reporting requirements and obtain representation as to compliance.
### Other Procedures
Right to visit and examine the books of account of the component.
Review a written summary of the other auditor's procedures.
Consider significant findings of the other auditor.
## Audit of Branch Office Accounts
### Section 128(1) – Companies Act, 2013
Every company shall keep at its registered office its books of account and FS.
Any books of account may be kept at any place in India as the Board of Directors decides — the company shall, within 7 days, file a notice in writing with the Registrar giving full address.
### Branch Office Accounts
Where a company has a branch office (in or outside India), proper books of account for branch transactions may be kept at that branch office.
Proper summarised returns periodically must be sent to the registered office.
Branch accounts shall be audited by:
The company's auditor (Statutory Auditor), OR
Any other person qualified for appointment as auditor of the company, OR
For a branch outside India: any accountant or person qualified as auditor as per laws of that country.
### Rule 12 – Companies (Audit and Auditors) Rules, 2014
Branch auditor shall submit his report to the company's auditor.
The duty to report fraud also extends to the branch auditor for frauds at branches.
Worked example
### Example 1
Example 1 (Principal Auditor's Reliance): ABC Ltd has 5 branches audited by different CA firms. The Principal Auditor (Statutory Auditor) is entitled to rely on the branch auditors' work but remains responsible for the overall audit opinion. He should communicate the timetable, areas of special consideration, and significant reporting requirements to each branch auditor at the planning stage.
### Example 2
Example 2 (Branch Outside India): XYZ Ltd has a branch in Singapore. The branch accounts may be audited by (a) the company's statutory auditor, OR (b) an accountant qualified as an auditor under Singapore law. The branch auditor must submit the report to the company's auditor.
### Example 3
Example 3 (Books at Place Other Than Registered Office): A company decides at a Board meeting on 10-04-2024 to keep its books at a new location in Mumbai. It must file a notice with the Registrar in writing within 7 days — i.e., by 17-04-2024 — giving the full address.
⚠️ Common exam mistakes
Believing the Principal Auditor's responsibility is reduced when using another auditor's work — it is not.
Forgetting the 7-day filing requirement with the Registrar when books are kept outside the registered office.
Assuming a branch outside India can be audited only by an Indian-qualified CA — accountants qualified under the foreign country's laws are also permitted.
Forgetting that the duty to report fraud (Section 143(12)) extends to the branch auditor for branch-level frauds.
Confusing the branch auditor's reporting line — the branch auditor reports to the company's auditor, not directly to the Board.
Bare-Act text Section 128(1); Rule 12 · Companies Act, 2013 + Companies (Audit and Auditors) Rules, 2014 · click to expand
Section 128(1), Companies Act, 2013: Every company shall prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year which give a true and fair view of the state of the affairs of the company, including that of its branch office or offices, if any... Provided that all or any of the books of account aforesaid and other relevant papers may be kept at such other place in India as the Board of Directors may decide and where such a decision is taken, the company shall, within seven days thereof, file with the Registrar a notice in writing giving the full address of that other place.