The AKKA
accounting qualification has been revoked for the partner, senior manager and
manager who worked in audit firm KTC33. The investigation has been opened by
firm ethics committee. The secret sources from KTC33 say that audit senior had
a conflict with partner regarding preparation of cash flow statement for
client. Partner asked audit senior to prepare the cash flow statement to speed
up completion of audit. However the audit senior disagreed and reported the
case directly to AKKA ethics committee. Management of KTC33 decided not to
defend partner and fired audit team management. Our correspondent, Rob, asked
for the comments from the audit specialist, Mr Task, in the city of Airstrip
One:
- Rob: Is it
common case when audit team in fact assists client to prepare financial
statements instead of auditing them?
- Mr Task:
These cases happen when client personnel do not understand value of audit and
not motivated to supply audit team with evidence and deliverables. Audit firm
partner should do his/her best a) to understand if client ready to have audit, including
if the accounting personnel can provide adequate audit evidence; b) to explain
the client the nature of services provided by audit firm.
Disclaimer:
all situations and names in this blog post are not real.
No comments:
Post a Comment