[Anonymous]

I just encountered a question in Becker where a client hires a firm to audit a third party’s financial statements, so the client can get financing for an acquisition. Can a company really hire an auditor to audit an entirely unrelated company’s financial statements? Wouldn’t this require the auditor to get the permission of the other company in order to perform procedures?

I am wary of posting the exact question, because I know I signed an agreement not to disseminate it. However, what I am really wondering relates to the nature of the situation more than the specific question. Thanks!

[DoubleBogey]

I think the third party absolutely has to consent. If they are trying to sell then meeting the potential buyer's request doesn't seem uncommon. Unless they had something to hide that an auditor would find.

[alloverit]

If consent is granted, that is acceptable.

And I wouldn't worry about posting a single question from review material. That's not what Becker is trying to stop. They just don't want people sharing ALL the questions.

You can also Google the question and you might get a direct hit anyway. I've seen the exact same questions in Becker, Wiley and Gleim before.

[Anonymous]

The Becker help people said it is extremely common when trying to purchase a company. I guess I had just never thought about it before.

[Author]

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