- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Hello Tutor,
Kaplan book says:
”1) If an audit client becomes a public interest entity, the length of time served as a key audit partner before the client became a public interestentity is taken into account. [R540.8]
2) If a key audit partner was a key audit partner on that engagement at a different firm, the length of time served at the prior firm should be taken into account. [R540.18]”.
Can you please explain the point no. 2, ?
Thank you.
2 is covering the possible (though in my mind unlikely) scenario that when a company changes auditor from firm A to firm B, a key audit partner of firm A switches allegiance to become a partner in firm B.
Okay, I will try to just keep this point in mind as it is (R540.18) and will state if required.
Thank you.
- The topic ‘Ethics section’ is closed to new replies.