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if finance director wants an audit partner to assist him to attend a meeting in order to obtain a loan for the company, then for the safeguard, can an audit firm assign different audit partner who is independent and objective in providing unbiased opinion to attend the meeting with the finance director ? (assuming the company of the finance director is non listed)
If independent and objective director can’t attend the meeting, may i know what is the appropriate safeguard for that ?
I would say the safeguard is to not do it. Even if it is another partner in the audit firm – that the audit firm supports the client in person in making a loan application could be regarded as advocacy threat. Obtaining finance for a company is management’s responsibility – it is certainly not the auditor’s role to be involved in this and I would rather query exactly what service the audit firm is being asked to provide.
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