Joint audit

Up to 1 mark for each advantage/disadvantage discussed:

– Retain local auditors’ knowledge of May Co
– Retain local auditors’ knowledge of local regulations
– Sambora & Co can provide additional skills and resources
– Cost effective – reduce travel expenses, local firm likely to be cheaper
– Enhanced audit quality
– But employing two audit firms could be more expensive
– Problems in allocating work – could increase audit risk

Maximum marks 6