Although the Commission also states that its does not intend to prevent an auditor from defending its work on an audit, the language in the rule seems to do so. However, this plain statement inadequately describes the complex interaction between auditor and client. Auditors often identify corrective journal entries, and where management understands and accepts the auditor's suggested changes, the audit process often results in better financial statements. Often, auditors assist in drafting footnotes to the financial statements of reputable sophisticated clients. This practice is especially common in dealing with newly issued comprehensive pronouncements.
Some auditors compile the financial statements.
With the consent of knowledgeable responsible management, this drafting means the public is presented with more sound and accurate financial data. Therefore the Texas Board suggests that the principles be reworded to include a more accurate description of the complicated concepts they address. The second principle should prohibit only the audit of financial information prepared by the auditor which is material support for, or part of, the audited financial statements and for which client management does not or cannot take responsibility. The fourth principle, acting as an advocate for the audit client, should exclude tax issues or services and expert witness services that meet the standard of a properly reworked first principle. We recommend that these principles be removed from the rule and presented in a separate guidance document or preamble.