[xmas]

Can someone help explain these situations? Trying to find info from PCAOB/AICPA but did not find any….

Can external auditor:

1) accept internal audit engagement? Under what circumstances can it be done/what are the prerequisites to engage in that task?

2) Do Audit,Reports and Compilations in the same year for the same client? Under what circumstances can it be done/what are the prerequisites to engage in that task?

I believe #1 seems like a “NO” but just want to make sure I am not missing the footnote that is written somewhere in the AU-C.

Thanks.

[kahtwoloo]

1. is a definate no. it violates some ethics/independence standards. you would find this in the ethics standards (ET)

2. im not really understanding what your asking here. are you asking if auditors can literally issue more than one type of report for the same entity in the same year? if thats what you're asking im going to with a no, heres why. lets say the firm is going to do a full audit of an entity and issue a report. they pretty much did everything they would do for a review and compilation plus some. why bother issuing to reports? also, i believe compilations contains the phrase something like “we have not audited or reviewed blah blah and do not issue an opinion. same goes for the review.

BEC-51,71,70,77
AUD-50,62,68 (retake july)
REG-55
FAR-15(didnt study)

[Anonymous]

Wanted to add quickly on #1 – the company's external auditors can not also fulfill the internal audit function for that same company/client; however, an external audit firm can provide internal audit functions. For example, a company could hire EY to do their internal audit and KPMG to do their external, even though both are external auditors.

[Author]

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