ACCA P1 Chapter 4 part b Board committees
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Mike, you’ve got to be one of the best lecturers of all time. You bring the course to life. Thank you!!!!!
That’s very kind of you to say, thanks
Audit committee and the external auditors ( ea ).
One of the responsibility is to review the scope of the audit with ea, and satisfy themselves that the scope is sufficient,
Sir am i right when i am thinking that there’s nothing to be worried about here because the audit committee is composed of NEDs only which are ‘independent’ and hence can satisfy themselves with the scope of the external auditors which are themselves independent?
Thank you.
This post would have fitted nicely into an Ask ACCA Tutor forum thread!
“… when i am thinking that there’s nothing to be worried about here …”
I would hope that there’s nothing to worry about anyway!
I’m not sure what your point is but the NEDs are not just some folk picked off the street with no understanding of business, commerce nor particularly auditing!
The NEDS will consider whether the proposed scope that the auditor has planned around and the materiality levels that have been set are appropriate for the risks involved within the entity and within the entity’s impact on the wider world
I think the use of the word “worry” is probably misplaced and I would certainly hesitate to use that expression in the exam – you make the whole exercise sound like a rubber-stamping function to provide the NEDs with something to do
Far from it!