X, Y and Z are joint auditors of a company engaged in manufacturing of chemicals. They have
developed a joint audit plan and identified common areas. Besides, they have also identified and
allocated work by signing work allocation documents among themselves. Verification of trade
receivables was allocated to Z. Which of the following statements is in accordance with relevant
SA in this regard?

a)** **X and Y should necessarily review work performed by Z to ascertain whether work has been
actually performed in accordance with Standards on Auditing.

b)** **X and Y should perform tests to ascertain whether work has been actually performed in
accordance with Standards on Auditing.

c)** **X and Y are entitled to assume that Z has actually performed work in accordance with
Standards on Auditing.

d)** **X and Y are not entitled to assume that Z shall bring to their notice significant observations
relevant to responsibilities noticed during the course of the audit.