- This topic has 3 replies, 2 voices, and was last updated 8 years ago by
.
- Posts
Dear Mike
I would like a little explanation if you don’t mind.
According to my notes made for June 16 exam, providing other services are ok except for performing executive functions and then also auditors are not allowed to prepare accounting records, I just want to clarify which accounting records this includes. I remember ages ago when I was working at an auditing firm, I had to prepare the cashbook for a client, and then obviously a lot of firms prepare the AFS of their clients so I just need some clarification on this please.
Many thanks
Not all audit firms’ clients require an audit. And, even if they DO have an audit, the rule applies only to public entities or public interest entities
It’s not a bad rule and an auditor providing an audit service to a non-quoted entity should seriously consider whether it is advisable to be preparing the financial statements as well as auditing them
In the lectures I seem to remember saying (truthfully) that I was once involved in writing up the general ledger for the last two months of the financial year (the accountant was off work with a nervous breakdown and the two month absence of figures was not apparent until after I arrived to do the audit)
In extenuating circumstances (and these must by definition be exceedingly rare) then it may be acceptable for the auditor to carry out some accountancy work on the audit client’s records.
OK?
- You must be logged in to reply to this topic.