INTRODUCTION
In large companies, especially banks, government entities, and big corporations, management may appoint more than one auditor to conduct the audit. These auditors are called Joint Auditors.
Since more than one auditor is involved, it becomes very important to clearly define their roles, duties, and responsibilities. Otherwise, confusion and disputes may arise.
Therefore, SA 299 – Responsibility of Joint Auditors provides clear guidelines on how joint auditors should divide work, coordinate with each other, and share responsibility. This Standard ensures clarity, accountability, and proper audit reporting.
1- Division of Audit Work
First, joint auditors must discuss and divide the audit work among themselves.
They may divide the work:
- By branches or units
- By specific areas (like revenue, expenses, inventory, etc.)
- By assets or liabilities
- By income or expenditure items
- By different time periods
Moreover, they must clearly document this division of work.
Thus, proper division avoids duplication and confusion.
2- Areas That Cannot Be Divided
However, some audit areas are very important or sensitive.
For example, matters involving significant judgment or statutory compliance.
In such cases, joint auditors should not divide the work. Instead, all joint auditors must examine these areas together.
Therefore, important matters require collective attention.
3 – Communication Between Joint Auditors
Next, proper communication is essential.
If one joint auditor finds any issue that relates to another auditor’s area, he/she must:
- Inform the other joint auditors
- Communicate in writing
- Do so before finalising the audit
This ensures transparency and avoids misunderstandings.
Thus, written communication strengthens coordination.
4 – Individual Responsibility
Each joint auditor is responsible only for the work allocated to him/her.
Even if the auditor does not prepare a separate report, responsibility still exists for the assigned work.
Therefore, responsibility depends on allocation of work, not on reporting style.
5 – Joint and Several Responsibility
However, joint auditors also share responsibility in certain matters.
They are jointly and severally responsible for:
- Audit work that is not divided
- Decisions regarding nature, timing, and extent of audit procedures
- Ensuring financial statements comply with legal requirements
- Ensuring the audit report follows statutory requirements
- Matters discussed and agreed upon by all joint auditors
This means each auditor can be held fully responsible for these common matters.
Thus, division of work does not remove overall accountability.
6 – Right to Rely on Other Joint Auditors
Each joint auditor can assume that:
- Other joint auditors have properly completed their allocated work
- They followed generally accepted auditing standards
However, this reliance applies only to work properly divided among them.
7- Disagreement Among Joint Auditors
Normally, joint auditors issue a common audit report.
However, if they disagree on any matter:
- Each auditor must express his/her own opinion
- They may issue separate reports
Therefore, professional independence remains protected.
Conclusion
In conclusion, SA 299 provides a clear framework for handling joint audits. It ensures that joint auditors divide work properly, communicate effectively, and understand both their individual and shared responsibilities.
While they may allocate different areas among themselves, they still remain jointly responsible for important and common matters. Therefore, proper documentation, coordination, and mutual understanding are essential for a successful joint audit.
By following SA 299, auditors can maintain professional discipline, avoid conflicts, and ensure high-quality audit reporting.