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Hi sir,
Self review theat occurs,
If the same audit team person (prepared the accounting records for the client comp and then audited them by himself)
Or
It occurs even if an audit member prepare client f/s
And then other memebr of same audit firm (audited) them?The question here is it created because
( preapring and auditing) bysame person or same audit comp or same audit team ?
Thanks
Threats are assessed at the level of the firm (e.g. see para 290.168 of the Rulebook).
Sorry sir i didnt get ur answer clearly
Do u mean threat is when same audit firm preparing and then auditing the client even if w siff audit teams members?
Thanks v much
A FIRM may provide “routine” services relating to accounting records and financial statements with appropriate safeguards (290.168) such as:
– the person(s) providing these services are not members of the audit team
– if they are members of the audit team, having their work reviewed by someone more senior who is not a member of the audit team.As a general rule, a FIRM cannot prepare accounting records and financial statements for a PIE audit client (290.169)
(There is an exception that the firm may provide “routine” services for divisions of a PIE subject to appropriate safeguards (290.170).)
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