1. when answer question, especially for section B, the question always address the candidates as "you" then we must always address and solve the questions as 3rd party right
For example if i were an engagement quality reviewer (EQCR) and when i address myself, i must always say ( in the exam paper) "EQCR must...." "EQCR should... "
if i were an audit manager, i should "audit manager should "
is it correct ?
2. i notice that some of the safeguards for the ethical threats are like "external review of the work done" and "independent review of significant judgement made by the individual "
This work done and independent review refers to matters in both audit and non-audit services right ?
so if external review, it may be the other audit firm auditing the work done and reviewing the work independently
is it correct ?
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EQCR & safeguards for ethical threat
7y ago#11. No - see my response here on 7 Feb (last post on the thread) https://opentuition.com/topic/aaap7-identifying-the-audit-risks-vs-evaluating-the-audit-risks/
2. External would clearly be independent but independent doesn't have to be external - it could be a second partner review (i.e. by a partner other than the engagement partner).
If an audit firm provides a non-assurance service (say valuation) to an audit client - an appropriate safeguard might be independent review of either the valuation or the audit work in respect of the valuation - it wouldn't have to be both.
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