Strengthen the existing requirements and impose a more uniform approach to the lead auditor's supervision of other auditors. These improvements are intended to increase the lead auditor's involvement in and evaluation of the work of other auditors, enhance the ability of the lead auditor to prevent or detect deficiencies in the work of other auditors, and facilitate improvements in the quality of the work of other auditors.


Most Recent Action

Proposed amending the Board's existing standards, AS 1201, Supervision of the Audit Engagement, and AS 2101, Audit Planning, to set forth requirements for evaluating the qualifications of other auditors and supervising the work of other auditors. Also, proposed superseding AS 1205, Part of the Audit Performed by Other Independent Auditors, and related interpretation, with proposed AS 1206, Dividing Responsibility for the Audit with Another Accounting Firm, that sets forth requirements that apply when the lead auditor divides responsibility with another accounting firm. The Board also issued a supplemental request for comment in 2017.



The roles of other accounting firms and individual accountants in audits (collectively, "other auditors") have taken on greater significance with the increasingly global operations of companies. The lead auditor often involves other auditors at various locations of the company, including in areas of the audit where there is a high risk of material misstatement in the financial statements. Working with other auditors can differ significantly from working with individuals in the same firm, creating challenges in the coordination and communication between the lead auditor and other auditors, including misunderstandings regarding the audit effort needed to meet the objectives of other auditors' work. Without adequate supervision by the lead auditor, deficiencies in other auditors' work can result in deficient audits.



The staff is developing a Supplemental Request for Comment for the Board’s consideration in 2021.