You are newly engaged by the James Company, a New England manufacturer with a sales office and warehouse located in a western state. The James Company audit must be made at the peak of your busy season when you will not have a senior auditor available for travel to the western outlet. Furthermore, the James Company is reluctant to bear the travel expenses of an out-of-town auditor.

Required:

a. Under what conditions would you, the principal auditor, be willing to accept full responsibility for the work of another auditor?

b. What would be your requirements with respect to the integrity of the other auditor? To whom would you direct inquiries about the other auditor?

c. What reference, if any, would you make to the other auditor in your report if you were 1. Assuming full responsibility for his work?

2. Not assuming responsibility for his work?