Q4(a) Fernwood Co / Carter & Co
"The valuation of the pension balance recognised is likely to involve many judgments and assumptions, and so is likely to be a subjective exercise. It is, therefore, most likely that Carter & Co will assess the situation as creating a signifi cant self-reviewthreat which safeguards cannot reduce to an acceptable level, in which case the valuation service should not be provided as well as carrying out the audit "
1.Why audit cannot be provide ,if the valuation service does not provide?
Ask the Tutor ACCA AAA
Jun 2010 Q4(a)
6y ago#1The auditor audits the net liability/(asset) - management must measure it.
If the self review threat cannot be reduce to an acceptable level then the valuation service should not be provided but the auditor can still able to provide the audit as long as the valuation / measured by the management or other expert?
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