The audit engagement partner now sends a further note regarding the Jovi Group:

‘The Group finance director has just informed me that last week the Group purchased 100% of the share capital of May Co, a company located overseas in Farland. The Group audit committee has suggested that due to the distant location of May Co, a joint audit could be performed, starting with the next financial statements for the year ending 30 June 2013. May Co’s current auditors are a small local firm called Moore & Co who operate only in Farland.’

Required:

Discuss the advantages and disadvantages of a joint audit being performed on the financial statements of May Co. (6 marks)