About the purchase in the Audit

You are not giving a lot to go on. If this is a general question – how may an audit firm (A) assist an audit client (B) in “M & A” (mergers and acquisitions), it would not be in the firm’s capacity as auditor but as a provider of additional, “non-audit” services – e.g. due diligence on the target company (C) or corporate finance advice on how to structure the takeover offer. Clearly the provision of non-audit services can create ethical threats (see “supply of other services” in chapter 4 of the notes) – however, due diligence reviews, etc are not examinable in AA.

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