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sir l dont understand the scenario Beech Co has already audited Willow for eight years so how can it carry out its audit again thanks
@jagmeet said:
who is an independent review partnerSee page 100 of the notes – it would be a partner who is not the audit engagement partner. It could be a partner from another office, for example. The point is that they must be sufficiently uninvolved with the client in order to carry out a review of the working papers (for example).
@jagmeet said:
sir l dont understand the scenario Beech Co has already audited Willow for eight years so how can it carry out its audit again thanksSee page 22 of the notes – the seven year rule relates to the audit partner – not the firm. Also, the rule is not so strict as to say that this can never be exceeded (as long as there are safeguards in place).
If you read beyond the first sentence you will see that the audit partner has been “rotated off” the audit engagement – which is good – but the reason for rotation is a safeguard to the familiarity threat to independence. (So she cannot be considered independent and could not carry out an independent review.)
thank you sir , sir and just to clarify wasnt sandeep pine supposed to be auditing for this year instead of Beech and Co?
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