Ad hoc requests for auditors’ views
88. There may be occasions when audited bodies seek the views of auditors on the lawfulness, accounting treatment or value for money of a transaction before embarking upon it. In such cases, auditors should be as helpful as possible, acting as a sounding board, but may be unable to give a definite view on any matter because auditors:
- must not prejudice their independence by being involved in the decision-making processes of the audited body;
- are not financial or legal advisers to the audited body; and
- may not act in any way that might fetter their discretion or ability to exercise the special powers conferred upon them by statute.
89. Any requests for ad hoc views should be reasonable. The audited body should ensure that it has undertaken its own due diligence work before approaching the auditor.
90. In response to such requests, auditors can offer only an indication as to whether anything in the information available to them at the time of forming a view could cause them to consider exercising the specific powers conferred upon them by statute. However, any response from auditors should not be taken as suggesting that the proposed transaction or course of action would be exempt from challenge in future, whether by auditors or others entitled to raise objection to it. It is the responsibility of the audited body to decide whether to embark on any action or transaction.