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A firm, network firm or audit team member should not have a close business relationship with an audit…
A direct, or material indirect, financial interest in the audit client must not be held by the firm or a network firm…
maam in all these cases what is Network firm? subsidiary/JV/associate of audit firm?
NOT subsidiary/associate relations as in shareholdings – an audit FIRM, like most LAW firms, are partnerships.
Network firm – A firm or entity that belongs to a network.
Network – A larger structure:
(a) That is aimed at co-operation; and
(b) That is clearly aimed at profit or cost sharing or shares
common ownership, control or management, common
quality control policies and procedures, common
business strategy, the use of a common brand-name,
or a significant part of professional resources.