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Hi there,
Firstly, thank you so much for all the amazing work you do here.
I have a query (a curiosity, more likely) about the ‘responsible party’ in one of the illustrations in the current Kaplan study text. It uses the analogy of buying a home to describe the three party involvement piece. It asks you to consider buying a home and why a surveyor is employed to carry out a survey to reduce the risks in buying property etc.
It established that the practitioner is the surveyor, the intended user is the house buyer and that the responsible party is the current owners of the property. In Ireland, it’s the responsibility of the purchaser to arrange a survey on a property they wish to buy. My confusion lies, possibly, in the terminology ‘responsible party’.
Would I be correct in thinking that the ‘current owner’ is the responsible party due to the fact that they are responsible for ‘granting access to the surveyor, providing them with answers to any queries they may have, authorising them to take photos of the property’ etc.?
See page 6 of our notes “A responsible party: the person responsible for the information and assertions.” So yes, you are correct.
I think your confusion arises because you may be assuming that the responsible party makes the appointment/pays the practitioner. As you have illustrated, it may well be the intended user who picks up the cost, etc. It is no different for audit assurance – the shareholders (intended users) decide on the appointment and level of remuneration through voting at general meeting (AGM) – and it is the shareholders’ wealth that is reduced by audit fees (not the directors’).
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