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1. The finance director is keen to announce the company’s financial results to the stock market earlier than last year and in order to facilitate this he has asked if the audit could be completed in a shorter timescale.
This has been identified as both audit risk and ethical threat. So should this be included as both audit risk and ethical threat
2. hurling co’s finance director has informed the audit engagement partner that one of the company’s non executive directors has just resigned, and he has enquired if the partners at caving and co can help hurling co in recruiting a new ned.
Why does this does not lead to a self review threat. Why does this does not lead to a self review threat because the non executive director may also be responsible for overseeing the audit process
3. Specifically he has asked the engagement quality reviewer who was until last year the audit engagement partner on hurling co assist the company in this recruitment
Why does this does not lead to a self review threat if the engagement quality reviewer and the audit engagement partner are the same person
Also how does this lead to a familiarity threat as it is not mentioned that the engagement quality reviewer was associated with hurling co for a long period of seven years4. Caving and Co also provides taxation services for hurling Co in the form of tax return preparation along with some tax planning advice
Why does this not lead to a self review threat as the tax planning advice should lead to a self review threat
1. Please clarify, what is your query?
2/3. The EQ reviewer is not going to be engaged as the NED in this scenario – he has been asked to provide a recruitment service. See this post for explanation of threats arising from the provision of recruitment services for an audit client https://opentuition.com/topic/threat-on-audit-firm-recuritement-services
4. It could lead to a self-review threat, but not necessarily – it depends on the nature of the tax planning advice https://opentuition.com/topic/tax-services-2
1. The finance director is keen to announce the company’s financial results to the stock market earlier than last year and in order to facilitate this he has asked if the audit could be completed in a shorter timescale.
Should this statement be included as audit risk when answering part b of this question and as ethical threat when answering part c of this question. Or should this statement be used only once either as audit risk or as ethical threat
3. Specifically he has asked the engagement quality reviewer who was until last year the audit engagement partner on hurling co assist the company in this recruitment
Why does this does not lead to a self review threat if the engagement quality reviewer and the audit engagement partner are the same person
1. As shown in the published answer it’s both – but it’s not repetition (if that is where you are going with this query).
3. This would be a valid point because the EQ reviewer would be reviewing the FS which include last year’s comparatives – hence the requirement for a two year gap period in the answer.
3. Specifically he has asked the engagement quality reviewer who was until last year the audit engagement partner on hurling co assist the company in this recruitment
But why this has not been identified as a self review threat in the answer
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