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I can’t understand the sentence in the case –
” Although Russell was not a member of the audit team he did update Lester on some business developments which had taken place at the company during the period before he left”Russell was not a member of audit team what does it mean?
He joined the audit firm said in the first sentence but in later sentence said he was not a member of audit team.In the answer to the question state that
Though the threats may be mitigated somewhat by him not being a formal member of the audit team of wire Co, the fact that a Russell helped the audit team by providing information about the audited entity means that the threats described above apply in this situation.I can’t also understand this para and unable to find meaning..
It may be useful for you to draw yourself a timeline when reading a scenario to put the events in context. The financial statements are for a year ended 31 December 20X4 (say – I don’t know whether you are looking at the published original or a version in an Approved revision kit). During that year, the client’s FD left the client (Wire) to work for the audit firm. He wasn’t assigned to the audit of the Wire (the Code of Ethics prevents) but he has shared information about his former employer, etc.
Audit FIRM means the practice/partnership made up of one of more partners all with their own client portfolios and supported by audit staff at all levels.
Audit TEAM means the team of staff assigned to the particular audit/client engagement.
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