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Where the audit manager’s wife has a financial interest in the client company.
Is a quality control review, by an independent partner, a better safeguard than removing the
audit manager from the audit engagement?No. The manager must NOT be involved in the audit. There is no way to reliably assess a spouse’s pressure and influence!
Is it sufficient to state that ”The audit partner should decline the appointment to carry out the different non-audit assignments.” & earn full marks for the safeguard.
Or I need to go a step further.I don’t understand your question. It seems nkt to have abything to do with your previous question in this thread.
I was trying to recommend a safeguard for an audit firm which is being offered a chance by the client to provide taxation and finance advisory services.
That was not clear..
The main threats are:
1 The audit partner is unlikely to be competent in tax and perhaps not in financial advisory services so the work would need to be done by someone with the proper expertise.
2 Total fees might become too high because of the extra work.
In general, audit firms are allowed to carry out other work for their clients.
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