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Sir, for assuming management responsibilities, will it be any different for a listed and non-listed company?
Is it even it is a non-listed company, the auditor should not assume the management responsibilities as the threat to independence is substantial and therefore no safeguard can reduce the risk to an acceptable low level?
Or there has an exception for the non-listed company, which allow the auditor to take responsibilities of the management such as preparing FS, tax planning, advice on the designing of the internal control?
Thank you.
No difference – consider this – directors (“management”), as agents, are accountable to shareholders (principals). The INDEPENDENT auditor effectively reports to the shareholders on how the directors have discharged their stewardship responsibilities. Therefore the auditor cannot be seen to be independent if he appears to assume management responsibilities.
Oh – and I don’t mind – but I am ms rather than sir.
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