Oireachtas Joint and Select Committees
Wednesday, 20 May 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Mr. Paul Smith:
I'll answer briefly. Remember, I'm not an expert on auditing. But my understanding is that it would be normal for the auditor to have a conversation with, not only the chief executive but other members of the management team in the client, to try and understand what was going on in the business. And the reason for trying to understand what was going on in the business is so that the audit approach which is then taken by the auditor in examining the financial statements for the year fully understands the nature of the risks that are inherent in the business. That's the purpose. The purpose is not to advise or to criticise or to critique the business practice of the client.
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