SA 299 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
SA 299 (Revised) lays down how two or more auditors appointed together should plan, divide, co-ordinate and report on an audit. It sets out which tasks each joint auditor answers for alone and which they answer for together.
SA 299 (Revised), as effective for audits of financial statements for periods beginning on or after 1 April 2018, applies where joint auditors are appointed. ICAI may revise standards, so check icai.org for the current text. For the reasons companies appoint two auditors see our explainer on joint auditors.
Joint auditors must plan together, agree a signed work allocation document, share a common engagement letter and representation letter, and normally issue one common report. Each is solely responsible for the work allocated to it, and all are jointly and severally responsible for undivided work, common-area decisions, compliance of the statements with statutes and the framework, and the report itself. A joint auditor who disagrees issues a separate report, with cross-references in an Other Matter paragraph.
Scope and objectives (paragraphs 1-5)
Paragraph 1 notes that appointing more than one auditor for large entities is a long-standing practice, voluntary or required by law. SA 299 gives principles for conducting a joint audit; the joint auditors must also comply with all other relevant SAs. Paragraph 2 excludes the relationship between a principal auditor and another auditor appointed for a component, such as a branch or subsidiary; that is the subject of SA 600.
The objectives (paragraph 4) are to lay down broad principles, provide a uniform approach, identify the distinct areas of work each joint auditor covers, and identify individual and joint responsibility. A joint audit is an audit by two or more auditors appointed with the objective of issuing the audit report (paragraph 5).
Planning, risk assessment and allocation (paragraphs 6-12)
| Step | What joint auditors must do | Paragraph |
|---|---|---|
| Involve the right people | The engagement partner and key team members of each joint auditor take part in planning | 6 |
| Overall strategy | Jointly establish an overall audit strategy setting the scope, timing and direction | 7 |
| Joint audit plan | Before the audit starts, discuss and develop a joint plan: divide audit areas and identify common areas; understand reporting objectives and timing; share significant factors; consider preliminary activities and earlier knowledge; decide resources | 8 |
| Risk assessment | Each assesses the risks of material misstatement, communicates them to the others and documents them, at statement level and for allocated areas | 9 |
| Procedures | Discuss and document the nature, timing and extent of procedures for common and allocated areas, and communicate them to those charged with governance | 10 |
| Common documents | Obtain a common engagement letter and common management representation letter | 11 |
| Work allocation document | Signed by all joint auditors and communicated to those charged with governance | 12 |
The application material says the division is usually by identifiable units or specified areas. Where that is not possible, it may be by items of assets, liabilities, income or expenditure, and certain areas, because of their importance or nature, are often not divided and are covered by all (A1). A2 explains that documenting the allocation avoids disputes among the joint auditors and with the entity.
Responsibility and co-ordination (paragraphs 13-16)
- Separate responsibility. Each joint auditor is responsible only for the work allocated to it, including proper execution of the procedures (paragraph 13).
- Joint and several responsibility. All joint auditors are jointly and severally responsible for: (a) work not divided and carried out by all; (b) decisions on the nature, timing and extent of procedures in common areas; (c) matters brought to their notice by any one of them on which they agree; (d) examining that the statements comply with the relevant statutes; (e) presentation and disclosure under the framework; and (f) ensuring the report complies with statutes, the SAs and ICAI pronouncements (paragraph 14).
- A4 clarifies that for the decisions on procedures all are responsible only for their appropriateness; the proper execution of those procedures is the individual responsibility of the joint auditor concerned.
- Passing on relevant matters. A joint auditor who finds a matter relevant to another's area, or needing disclosure, discussion or judgment, communicates it to all the others in writing before the audit is complete (paragraph 15).
- Own work and own controls. Each determines the nature, timing and extent of procedures for the allocated areas and individually studies and evaluates internal control and assesses risk for them (paragraph 16).
Our SA 300 planning article describes the overall strategy and plan that joint auditors build together.
Conclusion and reporting (paragraphs 17-21)
Joint auditors issue a common audit report. Where they disagree on the opinion or on matters to be covered, they express their opinions in separate reports. A joint auditor is not bound by the majority's view. Each report then refers to the others' separate reports under the heading "Other Matter Paragraph" as per SA 706 (Revised) (paragraph 17). A5 gives an example: with three joint auditors who all disagree, each issues a separate report and each includes an Other Matter paragraph referring to the other two.
Each joint auditor may assume that the others have performed their part in accordance with the SAs and need not review that work or perform tests to check it. The same applies to being told of any departure from the framework or significant observations relevant to their responsibilities (paragraph 18). Where one joint auditor audits a division or branch, the others may proceed on the basis that its statements comply with legal and regulatory requirements and present a true and fair view of that division or branch (paragraph 19). A6 adds that for branches, each joint auditor reviews the branch audit reports and returns allocated to it, ensures they are properly incorporated and decides whether to visit; for unallocated branches, they agree among themselves how to divide the review. See also SA 600.
Before finalising, the joint auditors discuss and communicate to each other the conclusions that will form the report (paragraph 20). When they expect to modify the opinion or add an Emphasis of Matter or Other Matter paragraph, they communicate the circumstances and proposed wording to those charged with governance (paragraph 21). See SA 705 and SA 706.
Illustrative example
Krishna Textiles Ltd, an invented listed company, appoints Mehta & Co. and Verma & Associates as joint auditors. At the joint planning meeting they agree that Mehta audits the northern units, revenue and payroll, Verma audits the southern units, fixed assets and borrowings, and both audit inventory valuation, related parties, financial statement presentation and the closing process. They sign the allocation document, share it with the audit committee, and obtain one engagement letter and one representation letter. Verma finds a sales return issue affecting Mehta's units, and writes to Mehta before completion. At the end, they agree a common report.
Need help with joint audit coordination?
If your company is appointing joint auditors and wants a clean work allocation, shared schedules and one set of requests, TaxClue's financial and legal due diligence team can help you organise them. Finance heads can also use our financial and legal due diligence service to prepare for a multi-auditor engagement.
Key takeaways
- Joint auditors plan together and sign a work allocation document.
- Each answers for its allocated work; all answer jointly for common areas and the report.
- Use one engagement letter and one representation letter.
- A common report is the norm; disagreement leads to separate reports with Other Matter references.
- Each may rely on the others' work without re-performing it.
Read next
- Joint auditors: when and why companies appoint two
- SA 300: planning an audit
- SA 600: using the work of another auditor
- SA 700, part 1: forming an opinion
Disclaimer: Based on the Standards on Auditing and quality standards issued by the Institute of Chartered Accountants of India, in the versions named in the article, and ICAI's announcement of 31 March 2026 on SQM 1 and SQM 2, as consulted on 3 October 2026. ICAI revises standards from time to time; check the current text and effective dates on icai.org. This article is general information, not legal advice; check the official text before acting.