Hey Mr. Mike,
Do audit firms ask senior staff to declare all the assets and account for them, including possibly providing tax returns for themselves and their spouse? I think this is a good way to check for issues with independence relating to share ownership and other investments. Is it practical to require these checks in the real world, or is this too much work for the audit firm?
Not only would it represent additional work for the audit firm to check on the personal portfolios of their staff, it would be a gross and unwarranted invasion of their privacy. I know very well what I would say if my ( former ) employer had asked me the details of my portfolio and for a copy of my tax return.
I would have responded in just two words and they would probably have contained a number of similar letters.
Auditors ( and students ) are meant to be honourable people, trustworthy people of unquestioned integrity. I say frequently in P7 lectures “If you can’t trust an accountant, who can you trust”
A simple answer to your question? “Yes, it would probably be too much work for an audit firm”
Actually, you say something like ” If you can’t sleep with an accountant ………”
Hi, no – one quote is “If you can’t trust an accountant, who can you trust?”
The other with which you have confused the first is “It’s easy to sleep with an accountant”
But better not to mix the two or you finish up with “If you can’t trust an accountant, sleep with one”
Anyone reading that needs to watch the video covering auditors / accountants and advertising if they want an explanation
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