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Company wants auditor….

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Company wants auditor….

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarKen Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 26, 2018 at 1:01 pm #460172
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Hello

    Sir if there is a threat mentioned in a scenario that “Company wants auditor to represent the company in a dispute with tax authorities”

    For its explanation would it be correct and valid to say that “This constitutes advocacy threat as firm may promote an opinion on behalf of the company such that independence of the firm is compromised. Additionally, the outcome of these issues may have a material impact on the financial statements, resulting in a self-review threat”

    And for its safeguard would it be correct and valid to say that “Due to the possibility of these issues having a material impact on the financial statements and the advocacy threat, the firm should politely declines this request”

    June 26, 2018 at 3:55 pm #460195
    AvatarKen Garrett
    Keymaster
    • Topics: 10
    • Replies: 10660
    • ☆☆☆☆☆

    Why do you think your answer is not right? The threat, its effect and its remedy are really simple. You need to be able to make your own judgement on something so straightforward rather than seeking validation..

    I will say no more on this.

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    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Company wants auditor….’ is closed to new replies.

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