General advantages and disadvantages of joint audits
Advantages:
- All work and fees are welcome to audit firms.
- An opportunity to closely inspect the auditing methods of another firm.
- The other firm may have special expertise which might fit well in a joint business.
- The other firm may have geographical location possibilities which complement.
- The other firm may be of such a size that a client company can be serviced which may otherwise be beyond available resources.
- Flexibility of working arrangements with another firm may avert bottlenecks owing to staff shortage at peak times.
Disadvantages:
- Shared legal responsibility. Liability for co-auditor's negligence.
- Lack of control. The other firm may have different audit standards which may be unsatisfactory.
- Any shared work or responsibility may lead to personality clashes.