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Proactive v/s Reactive

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Proactive v/s Reactive

  • This topic has 2 replies, 2 voices, and was last updated 10 years ago by jeyvin.
Viewing 3 posts - 1 through 3 (of 3 total)
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    Posts
  • March 28, 2015 at 1:51 pm #239309
    jeyvin
    Member
    • Topics: 6
    • Replies: 5
    • ☆

    Hello tutor,

    I have a question. I will be greatful if you could help me to better understand this question.

    The question is ‘ an audit would be effective if it is pro-active instead of being re-active’.

    Discuss the above statement.

    Thanks for your help.

    March 28, 2015 at 2:05 pm #239312
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    Well, that isn’t an F8 question. Looks like a poor academic question that someone has set for you.

    I don’t really understand it either. If it’s trying to say that auditors only react to problems in the FS, I don’t think that’s true. They do, of course, react to such problems, but they also collect sufficient appropriate audit evidence and that process is proactive and they write management letters to clients to point out internal control weaknesses and suggest improvements.

    I don’t think that auditors can begin to take part in the client’s management such as give advice on products or marketing. First, that would interfere with their independence and second auditors cannot be expected to have expertise in managing all manner of clients and their businesses.

    March 28, 2015 at 2:58 pm #239314
    jeyvin
    Member
    • Topics: 6
    • Replies: 5
    • ☆

    Thanks for your quick reply. Indeed it is an academic question.

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