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DO unlisted company also have audit committee ? because in question march june 2016 did not state whether the firm is listed or not and just mention audit committee exist in the company. Then, in this case can i assume for whole AAA (P7) paper, audit committee only exist in listed company not in unlisted ?
Because as for March / june 2016, like for “tax issue” i can state that the audit firm can reject because if the matter is material and the audit client is listed, tax service can not be provided.
However, if the audit client is not listed, i may say that audit firm can accept since the audit client is not listed and as long as safeguards are in place to reduce threats to an acceptable level.
In this question, i’m confused whether i should assume whether the firm is listed or not listed
UK Code (for example) applies to listed companies (“comply or explain”) and is best practice for ALL companies. So large unlisted companies may well have an audit committee.
If it really doesn’t say in a question whether the client is listed or not you don’t have to assume either but, as you have sensibly suggested, consider both.
so that means i write the answer considering both that the entity is listed or not listed ? stating “if unlisted can provide the service if have safeguards” and “if listed and since the service is material in nature, service can’t be provided” ?
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