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Sir, regarding threats to fundamental ethical principals, How can there be self-interest threat when fees from listed Co are more than 15% of total audit firm’s revenue, if we are agents of shareholders. They want not clean report, they want, in fact, evidence whether FSs can be relied on or not. Why should we scare management, if we report to shareholders and management cannot affect our next year appointment. Really confused now.
Shareholders appoint auditors, utility on the recommendations of the directors.
If the directors dislike the view taken by auditors they can make life very difficult for the auditors, eg, recommending that they are replaced.
thanks a lot.
Sir, the engagement partner should be rotated off every 7 years for at least 2 years. Right?
What about the 5 years rule. There were someone who should be rotated off every 5 years right. Who was that?
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