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Hi sir,
Part A:
“They would like to recruit one of your audit partners for a six-month period to help prepare for the listing”
They didnt specifiy if the partner requested is part of audit team of comp or not?
If its part if audit team it not allowed as there should be cooling off Period. So the request should be declined.
If it not part of audit team its allowed but will be significant threats (self review/self intetest)
Could u Clarify the situation here sir?
I am thinking of is it allowed of a partner to join the client comp or not
But in the examiner answer they are discissing that it its allowed to join. But stating ways to reduce the threat
As you say, the request is “one of your audit partners” – and the engagement partner couldn’t do it – but rather than conclude decline you can explore the options that wouldn’t have to be declined (with appropriate safeguards).
The answer is looking at how the service could be provided (preparation for the listing) without seconding a partner to the client for 6 months (all partners will have lots of clients to serve – so one client monopolising a partner for such a long period may not be in the firm’s best interests). Not everyone becomes a partner – the firm would have audit managers – perhaps they could be seconded instead.
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