Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › June 2011 #4
- This topic has 1 reply, 2 voices, and was last updated 10 years ago by Ken Garrett.
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- March 11, 2014 at 3:16 pm #162063
Hello sir, I am having some problems with part (a) and (c) of this question.
Part A:
In this part I mentioned everything except:
– notifying Goofy Co and Mickey Co
– clear guidelines on security and confidentiality.Will I loose marks?
Part C:
I found this line in the scenario to be a threat when I read it in my mind, “If NAB & Co is appointed as internal and external auditors”.Threat- NAB & Co “may” be both internal and external auditors of the client. This is a self review threat if NAB & Co uses 1 team to be the internal and external auditors.
Safeguard- If NAB & Co does in fact become both internal and external auditor, they should ensure different teams are used.
However, this was not in the examiner’s answer. Is this wrong?
Finally, I have a general query. How long should a key audit partner also known as the engagement partner should be on the audit team for a “listed company” and for a “company does that is not listed”?
Thank you!
March 13, 2014 at 9:39 am #162210You comment about independent teams is fine and I would Have said something like that.
Lead partners should be rotated no less often than every 7 years when auditing a public interest client. No guidance is provided for non-public interest clients.
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