Question

In: Accounting

when should a practitioner not rely o. the work of others?

when should a practitioner not rely o. the work of others?

Solutions

Expert Solution

Under the following circumstances the practitioner should not rely on the work of others:

  • The person on whom we want to rely is not independent in his capacity and in relation to the organization in the past or present, which means he is having his own interest in the organization such as a director, partner, voting rights of the major portion in the company any other ways as such
  • There should be a written communication and the understanding of the level of work and its assurance when it lacks such communication we should not rely on.
  • The source data used to arrive the conclusion or to prepare the report on which we want to rely shall be accurate, once the source data is lacking the proper internal controls or the data used is not authorized or unmodified data as per the latest changes then its not a proper base to rely on
  • In order to rely on we should prepare a questionnaire and ensure the applicable laws and provisions and rules are implemented and prepared as per such all, it should be monitored on a timely basis.
  • The proper coordination between the person on whom we are going to rely on should be maintained.

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