Jun 15 Q 1

Sir and how does the previous audit engagement partner cause a self interest threat on becoming the NED of the company?Thank you sir

@jagmeet said: Sir and just to clarify wasnt sandeep pine supposed to be auditing this year instead of Beech Co?

When we refer to "the auditor of X Co" we mean the audit firm - which will be given a name "... & Co". Sandeep Pine is an individual - the audit partner who has replaced Bethan Oak.

@jagmeet said: Sir and how does the previous audit engagement partner cause a self interest threat on becoming the NED of the company?Thank you sir

Consider the role of NEDs in the governance of a company (pages 11 & 12). Imagine that Bethan Oak were to fulfil this role for the audit client (Willow) and remain a partner of Beech & Co - if you were a shareholder of Willow would you think this was ok? Would you not be concerned that Beech & Co could not possibly be independent?

So sandeep Pine works for Beech Co the Co that is supposed to be auditing this year

@kim2311 said: When we refer to "the auditor of X Co" we mean the audit firm - which will be given a name "... & Co". Sandeep Pine is an individual - the audit partner who has replaced Bethan Oak.

So sandeep Pine works for Beech Co the Co that is supposed to be auditing this year

Yes - how could it be otherwise? If you put any other possible interpretation on who or what is Sandeep Pine read the entire scenario and consider if any other interpretation really makes any sense. For example "Willow has also asked Sandeep and the other partners at Beech & Co ..."