From Published Accounts

COMPILERS’ NOTE

Standard on Auditing (SA) 600 ‘Using the work of another Audior’ (issued in 2002 by ICAI) and revision thereof in view of changes in ISA 600 has been a matter of hot debate in last few weeks. NFRA has, besides issuing a consultation paper on 17^th September, 2024 for proposed revision of SA 600 (with detailed reasons for the change), also issued a circular on 3^rd October, 2024 for ‘Responsibilities of Principal Auditor and Other Auditors in Group Audits’. The circular is applicable on immediate basis and debate is on whether the same would apply to audits / reviews already completed / in progress.

In India, auditors have, so far, applying the existing SA 600 and SA 706, included an “Other matters” paragraph in their report, where reference is given to reliance placed on work of other auditors and details of the assets, revenues and cash flows for such reliance.

The compiler believes that based on the aforesaid NFRA circular and the revised SA 600 (when promulgated), the audit planning and reporting by the auditors can undergo a drastic change.

Given below are few instances of audit reporting on consolidated financial statements for the year ended 31^st March, 2024 in large companies having multiple subsidiaries, a