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Why acca doesnt permit auditors to assume management responsiblity for audit clients?
Because the PRIME characteristic of an auditor is independence!
The auditor has a responsibility to the shareholders to express an independent audit opinion on the truth and fairness of the view shown by the financial statements
How can that be possible where the auditor is involved in the management of the entity?
Imagine our auditor appointed to the board of directors of the entity that is being audited and is now required to express his / her professional audit opinion on the truth and fairness of the view shown by the financial statements where, for example, the entity has under-performed as a direct consequence of management decisions made by the auditor
How’s that for a conflict of interests!
Can you imagine that????
OK?
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