Need help in auditing question.?

Question

1. What are the advantages of having the same firm provide both the auditing and consulting services?

2. Why would a company wanted to hire prior members of its external audit team?

I'm am looking for a professional answers. Thx a lot.

Answer 1

1. What are the advantages of having the same firm provide both the auditing and consulting services?
This increases efficiency and saves time. In both auditing and consulting, you have to spend a lot of time documenting the client's processes and learning all about the client's environment. If seems so attractive to have the same firm do both cos then you just have to go thru the familiarisation process just once. In addition, you tend to think that just because your firm provided the consultancy advice, the client can't go wrong and the perception is that you can cut down on audit work.

However this is exactly why this is not allowed. IFAC's code of ethics discusses independence, conflicts of interests, and how to evalutate and mitigate these threats. The link is below.

2. Why would a company wanted to hire prior members of its external audit team?
Companies love to do this, especially if their accountants are less than competent. By the time an audit staff has completed the audit, he knows all about that client, what the auditors have discovered, etc and the perception is that he can help get the client's house in order. This is fine as long as the auditors for the next year don't cut corners just because their ex-colleague is churning out the accounts. This would represent a familiarity threat. This is also covered in the code of ethics.

Answer 2

i've got no contacts anymore as replaced into getting stalked for 3mths & numerous problem so had to do away with them...questions all have been given stated, very unhappy certainly that somebody would upload to only rfile, would under no circumstances be spiteful to anybody like that whether fell out with somebody.... good luck with year audit :)

Answer 3

how to calucate the year over year on income statement with 31% growth