07-12-2010, 03:29 AM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by agent_0078</i>
<br />HI...
is anyone who could answer my question, or is there any chartered accountant there?
my question is, is it allowed that an auditing firm (chartered accountants)will audit (external audit)and express an opinion to its current client whom he is engaged in providing accounting and bookkeeping services?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hello,
the situation you described used to be very common in the accounting / auditing practice. Many auditing firms run also accounting department providing bookkeeping and other services to its clients.
However, there is a strong conflict of interest issue. Auditor and accountant should not come from the same company - otherwise it's like auditor is auditing his own work and independence disappears. That is simply not allowed - please refer to International Standards on Auditing.
Best regards
Silvia M. / www.ifrsbox.com
<br />HI...
is anyone who could answer my question, or is there any chartered accountant there?
my question is, is it allowed that an auditing firm (chartered accountants)will audit (external audit)and express an opinion to its current client whom he is engaged in providing accounting and bookkeeping services?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hello,
the situation you described used to be very common in the accounting / auditing practice. Many auditing firms run also accounting department providing bookkeeping and other services to its clients.
However, there is a strong conflict of interest issue. Auditor and accountant should not come from the same company - otherwise it's like auditor is auditing his own work and independence disappears. That is simply not allowed - please refer to International Standards on Auditing.
Best regards
Silvia M. / www.ifrsbox.com
