**MCQ 4 — SA 299**

**This one attacks the “joint auditor checks everything” misconception**

**PQR Ltd.** has appointed CA A and CA B as joint auditors.

The work allocation document, signed by both auditors and communicated to TCWG, assigns:

revenue and receivables to A;
inventory and property, plant and equipment to B.

During the audit, B notices that a particular inventory purchase arrangement has an unusual contractual term that potentially affects the recognition of a significant revenue transaction falling within A’s allocated area.

B discusses the matter with A **orally**. A agrees that the matter has implications for revenue and states that A will consider it while completing the revenue audit.

A subsequently performs the required procedures and both auditors agree on the treatment.

Which ONE of the following best describes the responsibility arising from these facts?

**A.** A alone is responsible because revenue was allocated to A and B’s role ended after drawing A’s attention to the matter.

**B.** B remains solely responsible because B originally identified the unusual term and therefore must perform all procedures necessary to resolve its consequences.

**C.** Both auditors become jointly and severally responsible for every procedure performed by either auditor merely because they agreed on the accounting treatment.

**D.** The work allocation remains relevant, but the matter communicated by B and agreed upon by both auditors falls within the category of matters for which the joint auditors have joint and several responsibility; the individual execution of procedures in A’s allocated area remains A’s responsibility.