Cheetah co S17/D17 (A)Kaplan kit part b)

But consider - an auditor accompanying a client to a bank an "holding their hand" - is that not rather like having a solicitor with a client who is helping the police with their enquiries? The mere fact that they are present suggests some capacity to influence the meeting/outcome - it is management's responsibility to negotiate the terms of the loan and the auditor would be in impossible position if called upon in the meeting to make any comment on the proposals.

Interim accounts are REVIEWED by the external auditor - this is an example of a limited assurance engagement. See page 123 of the notes. (The applicable standard is International Standard on Review Engagements (ISRE) 2410 “Review of Interim Financial Information Performed by the Independent Auditor OF THE ENTITY".)

Because the external auditor is reviewing interim financial statements and providing a report thereon ("negative" assurance) - the same external auditor who will provide a "reasonable assurance" opinion on the year-end financial statements. "Self-review" is to take account of one's own work - which is not restricted to having "prepared" something for audit. Per the IESBA Code ... "Self-review threat - the threat that a professional accountant will not appropriately evaluate the results of a PREVIOUS JUDGMENT ["negative" opinion] made OR an ACTIVITY performed .... on which the accountant will rely when forming a JUDGMENT as part of performing a CURRENT ACTIVITY."