Audit and Related Services

This query is : Resolved

M.Sathish Kumar (Querist)
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23 March 2008 Sir,

What are the related services?

When does related service engagement arises without an Audit engagement? and provide me some practical situation or examples for the same.

Thanks in advance!

DURVI

DURVI (Expert)
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27 March 2008 Audit is done under the engagement only but if the Party whose books of account are not properly closed because of the adjustments then some consultancy is necessary for closing the entries in the proper way.Second thing is internal Audit or Physical verification such type of audit required Audit engagement but then the auditor can provide his opinion for the system of the organisation how they can effectively and efficiently can give more logical web. That type of consultancy have no need for engagement.The party required suggestions that the books of account are made in such a manner to commensurate with the Income tax and banks records for showing solvancy and a good mirror of his organisation. Such other consultancy can be treated as related services, which are not required any Audit engagement.