# SA 600: Procedures by the Principal Auditor

The PA must obtain sufficient and appropriate audit evidence that the Other Auditor's work is adequate for the PA's purposes. The following procedures are ordinarily required:

## Step 1 — Coordinate at the Planning Stage

The PA must advise the OA about how their work will be used and make sufficient arrangements for coordination. This includes communicating:

Matters requiring special consideration
Procedures for identifying inter-component transactions that may require disclosure
The timetable for audit completion

## Step 2 — Communicate Requirements and Obtain Representations

The PA must:

Brief the OA on significant accounting policies, auditing requirements, and reporting requirements
Obtain representation from the OA confirming compliance with these requirements
Review a written summary of audit procedures performed — this may be a completed checklist or questionnaire

## Key Principle

Early, clear communication between the PA and OA is essential. The more integrated the components, the more critical coordination becomes at the planning stage.

Worked example

### Example 1

Coordination in Practice: CA Priya (PA auditing Globex Ltd) notifies CA Suresh (OA for the Hyderabad branch) of: the audit deadline (March 31), specific risk areas to focus on (inventory valuation), applicable accounting policies, and the format for his summary report. After CA Suresh completes his work, CA Priya reviews his completed audit checklist to satisfy herself that the work is adequate.

### Example 2

Written Summary Review: Rather than visiting the branch office herself, the PA asks the OA to complete a structured questionnaire covering: internal controls tested, substantive procedures performed, key findings, and any unresolved matters. The PA then reviews this document to determine whether additional procedures are needed.

⚠️ Common exam mistakes

Accepting the OA's report without any review procedures — SA 600 requires the PA to actively evaluate adequacy, not merely receive the OA's report.
Coordinating only at the end of the audit rather than at the planning stage — SA 600 requires early coordination so the OA's scope is set correctly from the start.
Failing to communicate inter-company/inter-component transaction requirements to the OA, leading to incomplete disclosure in the final financial statements.

Reference:

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Procedures by the Principal Auditor when Using Another Auditor's Work

Worked example

⚠️ Common exam mistakes