09-29-2003, 06:44 PM
First of all I will thank both Raza and pervaiz for thier valuable input.
Yes I have gone through the link provided by Raza of board meeting of FASB it disscusses that acquisation of bussiness through method other than acquisation of net assets, and sysy these are not covered under Bussiness combination deifinition under IAS-22 currently however they intend to change the definition to include that. The minutes are date some where in Feburary 2003 which is most recent available.
As far as providing justification to a client, I would like to remind you that Financial statements are the responsiblity of management and we as auditor can not change anything in it with out first disscussing and getting them to agree to it. If there is a dis agreement and we are convinced that we are right and the item under disscussion is material to the financial statements than offcourse we have a right to modify our audit report accordingly. Trying to convince the client only means that if he agrees the resulting treatment will be made in accounts otherwise we will modify our report on financial statements. Disscussing something with the client and asking them to do the right thing does not impair our independence in any way. What you suggest is that the client knows nothing about the accounts although he is an FCA and with very good experience behind him and I should insert whatever adjustment I lik ein the accounts. Well on this I would say I am the auditor not the accountant I will work on what I need to insert in my audit report if client does not do the right treatment I will not adjust the account (Unless client agrees to it. It is my duty as a auditor to inform client what he is doing wrong and on what basis.
How would you if I come to you and say you are wrong and I am changing your accounts with out giving you any reasons for it?
Any way thanks Pervaiz. It was nice having disscussion with you <img src=icon_smile.gif border=0 align=middle>
Yes I have gone through the link provided by Raza of board meeting of FASB it disscusses that acquisation of bussiness through method other than acquisation of net assets, and sysy these are not covered under Bussiness combination deifinition under IAS-22 currently however they intend to change the definition to include that. The minutes are date some where in Feburary 2003 which is most recent available.
As far as providing justification to a client, I would like to remind you that Financial statements are the responsiblity of management and we as auditor can not change anything in it with out first disscussing and getting them to agree to it. If there is a dis agreement and we are convinced that we are right and the item under disscussion is material to the financial statements than offcourse we have a right to modify our audit report accordingly. Trying to convince the client only means that if he agrees the resulting treatment will be made in accounts otherwise we will modify our report on financial statements. Disscussing something with the client and asking them to do the right thing does not impair our independence in any way. What you suggest is that the client knows nothing about the accounts although he is an FCA and with very good experience behind him and I should insert whatever adjustment I lik ein the accounts. Well on this I would say I am the auditor not the accountant I will work on what I need to insert in my audit report if client does not do the right treatment I will not adjust the account (Unless client agrees to it. It is my duty as a auditor to inform client what he is doing wrong and on what basis.
How would you if I come to you and say you are wrong and I am changing your accounts with out giving you any reasons for it?
Any way thanks Pervaiz. It was nice having disscussion with you <img src=icon_smile.gif border=0 align=middle>
