- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Hello to the Tutor ,
I was hoping I could get some direction or Clarification of what is permitted non audit service work , while also providing the Statutory Audit of a PLC.
I have read material and may not have not understood it correctly ( which is highly likely ! )
I Understand that if sufficient safeguards are in place that there are various non-audit services that can be provided to an Audit client , where I am getting confused … are there any Internal Audit Services which cannot be provided in any circumstances ?Example I read in an Approved manual that to Design the Accounting software which produces a significant amount of information which ends up in the Financial Statements would lead to a self review threat that cannot be reduced to an acceptably low level .
Stupid question , Is internal Audit services and non Audit Services the same thing ?
Thanking you
A stressed out P7er ..No, not necessarily the same.
“All elephants are animals but not all animals are elephants”
Internal audit services are non-audit services but not all non-audit services are internal audit services
OK?
Very good 😉 !!! Thank you and to really annoy you ??
Assuming not all animals are elephants ….. Are there any non audit services which point blank cannot be undertaken for a PLC audit client ?Preparation of financial statements except in VERY, VERY rare circumstances
In my trainee days I was sent out to an audit client for a two week audit. On day 1 I was introduced to key members of the client’s staff and, introductions over, I sat down with the company accountant and we discussed the client’s business.
During that conversation, it came out that the draft financial statements had not yet been prepared but would be ready soon.
On the next day, I turned up to work and received a phone call from the audit partner. He tells me that the accountant is now in hospital having suffered a major state of depression and did I feel up to writing up the nominal / general ledger for the last month, extracting a trial balance, putting through the period end adjustments and preparing the financial statements.
Of course I leapt at the opportunity!
And then I audited my figures
That was the only time that I was involved in the preparation of financial statements for a “relevant” company. It was a subsidiary of the parent of a group of companies and any delay in the submission of my company’s figures would have delayed the publication of the group figures and the stock exchange would not have been happy. An exceptional circumstance
Otherwise, an auditor should not get involved in the preparation of financial statements.
OK?
- You must be logged in to reply to this topic.