CA Arjun, CA Bharat and CA Chirag have been appointed as joint auditors of BCA Ltd., a company having manufacturing units at three different…

As per SA 299, "Joint Audit of Financial Statements", prior to the commencement of the audit, the joint auditors shall discuss and develop a joint audit plan. In developing the joint audit plan, the joint auditors shall: - Identify division of audit areas and common audit areas amongst the joint auditors that define the scope of the work of each joint auditor. Where joint auditors are appointed, they should, by mutual discussion, divide the audit work among themselves. The division of work would usually be in terms of audit of identifiable units or specified areas. In some cases, due to the nature of the business of the entity under audit, such a division of work may not be possible. In such situations, the division of work may be with reference to items of assets or liabilities or income or expenditure. Certain areas of work, owing to their importance or owing to the nature of the work involved, would often not be divided and would be covered by all the joint auditors. Ascertain the reporting objectives of the engagement to plan the timing of the audit and the nature of the communications required Consider and communicate among all joint auditors the factors that, in their professional judgment, are significant in directing the engagement team's efforts Consider the results of preliminary engagement activities and, where applicable, whether knowledge gained on other or similar engagements performed earlier by the respective engagement partner for the entity is relevant. Ascertain the nature, timing and extent of resources necessary to perform the engagement. Thus, the approach suggested by CA Bharat and CA Chirag is appropriate, as joint auditors are required to jointly discuss and develop an audit plan before commencement of the audit, including mutual division of work, identification of common audit areas, reporting objectives, significant matters and resource requirements and approach of CA Arjun is not appropriate, as joint auditors should not independently decide their audit areas without prior mutual discussion and coordination while developing the joint audit plan.