Jun 15 Q 1

This topic has 6 replies, 2 voices, and was last updated 4 years ago by Kim Smith.

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September 13, 2018 at 11:01 am #474486
jagmeet
- Topics: 62
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Sir and just to clarify wasnt sandeep pine supposed to be auditing this year instead of Beech Co?
September 13, 2018 at 11:06 am #474487
jagmeet
- Topics: 62
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Sir and how does the previous audit engagement partner cause a self interest threat on becoming the NED of the company?Thank you sir
September 13, 2018 at 2:06 pm #474501
Kim Smith
Keymaster
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@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.
September 13, 2018 at 2:14 pm #474502
Kim Smith
Keymaster
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@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?
September 13, 2018 at 5:07 pm #474511
jagmeet
- Topics: 62
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So sandeep Pine works for Beech Co the Co that is supposed to be auditing this year
September 13, 2018 at 5:08 pm #474512
jagmeet
- Topics: 62
- Replies: 56
@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
September 13, 2018 at 6:35 pm #474517
Kim Smith
Keymaster
- Topics: 93
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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 …”
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