AAA – Nov 2011 – L3 – SAII – Q9 – Group Audits

Explanation of audit procedures communication from secondary to primary auditor.0.............................................................

Question

A letter written by the secondary auditor to the primary auditor explaining all the procedures used in carrying out the audit of the subsidiary company is known as……………………………

Answer

Audit Clearance Memorandum

Explanation:
An Audit Clearance Memorandum is a formal letter from the secondary auditor to the primary auditor that details the procedures, findings, and conclusions reached during the audit of a subsidiary company. This communication provides the primary auditor with assurance and insights into the subsidiary’s audit, facilitating a consolidated and comprehensive audit report for the entire group.

Tags: Communication in Audits, Group Audits, Primary Auditor, Secondary Auditor
Level: Level 3

Topic: Group audits
Series: NOV 2011

Uploader: Dotse