International Referrals
Overview
24.119 The ultimate responsibility for the control of all work that is assigned by one GTI member or correspondent firm to another always rests with the group audit lead partner who is responsible for referring the work. The parameters of the work to be performed and a budget of the fees to be charged should be agreed between the group audit lead partner and the component audit partner responsible for the performance of the referred assignment. In order to avoid any possible misunderstanding at a later date, full consultation, both as to the scope of the work and to the policy on fees, must take place prior to the commencement of the work in all circumstances. Good communications and proper controls at all times are essential to avoid disagreements.
24.120 All work referred to a receiving firm is to be performed, at a minimum, in accordance with the generally accepted professional standards of the referring firm. In every case, each firm has the right to indicate to the other the specific professional procedures which should be employed in accordance with the nature of the work and of any agreement with the client. Certain countries have their own legal requirements as to general work to be performed, and receiving offices should not be required to perform work below the minimum standards or requirements of their own country. It is essential that the referring firm be informed of these requirements, which may differ from practice in the referring country, before the assignment is commenced.
24.121 It is the responsibility of the audit team to prepare a CAAM including the information necessary for the receiving office to perform their work effectively and efficiently. Because of differences in language and customs, communications should be clearly written, with as much detail as necessary in the circumstances.
24.122 Because of the problems frequently encountered with international communications, it is essential that whenever group or component auditors send important documentation, such as instructions, reports, and so on, they determine, through communications with the receiving firm, that the information was received and understood. The receiving firm should provide the acknowledgment as soon as possible.