11-11-2003, 05:57 PM
somebody said here that we aint living in the US, well let me tell you one thing that the favors they (auditors) do there to the clients are much more titanic than what we do here.
Doing a favor, its based on judgement, you consider the risk associated with doing / not doing the favor and the benefits of doing / not doing the same. I wonder why there is no auditing standard or practical statement for 'doing favors to the client'.
we are all too eager on bringing our governance and other procedures in line with 'gora sahab', what we dont understand is the complete difference of corporate structure 'here' and 'there'. Over with them usually the management and shareholders are largely separate (talking about listed companies) while here they have a greater degree of role in the management (which has both merits and de-merits), so an ML sent to management is actually or can be used by the shareholders (the directors) to bamboo the management, plus the covering letter is also a very important aspect of our audit culture (I dont see why we mention it too much, not even in the standards), it is sent to the board.
Me rulz
Doing a favor, its based on judgement, you consider the risk associated with doing / not doing the favor and the benefits of doing / not doing the same. I wonder why there is no auditing standard or practical statement for 'doing favors to the client'.
we are all too eager on bringing our governance and other procedures in line with 'gora sahab', what we dont understand is the complete difference of corporate structure 'here' and 'there'. Over with them usually the management and shareholders are largely separate (talking about listed companies) while here they have a greater degree of role in the management (which has both merits and de-merits), so an ML sent to management is actually or can be used by the shareholders (the directors) to bamboo the management, plus the covering letter is also a very important aspect of our audit culture (I dont see why we mention it too much, not even in the standards), it is sent to the board.
Me rulz
