[xibadx]

1) If a principal auditor can assign a division of responsibility without mentioning the other auditor, then why would he/she do so? What would give the principal auditor the incentive to take full responsibility?

2) If lead partner and reviewing partner must rotate every 5 years… can they simply switch? Or do they need to rotate OFF the audit altogether? “every 5 years” is also a difficult tern because it doesn’t clarify how long they must actually rotate off for (e.g. 5 years on followed by 1 year off, and then 5 years on again… is that acceptable?)

please clarify

All passed on first try - Licensed CPA Texas
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[KelzMS]

They have to rotate off the audit completely and they have to be off the audit for 5 years. In other words 5 years on followed by 5 years off. Other people on the audit can stay on for 7 years and they have to be off for 2 years.

As far as your first question for some reason I was thinking they had to mention the other auditor if they were assigning a division of responsibility but I may have read that wrong. I have no idea why they would want to take full responsibility.

Hope this helps a little.

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[kevlee]

1. they would take full responsibility if they are able to satisfy the work done by the other auditors by evaluating their reputation, independence, professional competency, and audit procedures.

2. as for this question i think all you need to know is that the LEAD and REVIEWING partner must rotate off 5 years and all the other staff can stay on for 7. i dont think they go that much in dept with this question.

[Author]

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