Auditing 300
Notes
, Provide whether they are accontentant in business or accontent in public practice (state what parts are relevant to them of SAICA CPC
state
any ethical issues we can see from Scenario
concerning the accountant/auditor and the client
State
any
and all fundamental principles being threatened by the issues
(familiarity/self-interest/self-review intimidation/advocacy
/
link each threat and each issue together as a reason to validate the issue and treats (include level of threat)
such as not accepting the
Give possible safeguards engagement or removing people or stopping certain actions
Institute
Ethics for Professional Accountants :
what I
-o
-
G prof . Services based on current practices. Up to date with
legislation and technical standards
>
respect confidentiality of information result of business relationships Dont disclose to 3rd
-
, as a .
parties without proper autharily leg legal , or professional duly to disclose and dat use information to personal advantage
E with relevat laws /regulations tovoid action to discredit the profession
comply
-
any
Threats to fundamental principles : thesewe circumstances thatcreate specific threats to principles
↳ the to evaluate and address threats
Categories of threats
conceptional framework shows how
identity ,
to compliance with principles :
·
If a threat is too
significant that safeguards cant be applied :
·
self-interest threat :
a financial or other threat will influence
negatively the accontents behavior or
judgements
O decline
·
Self-review threat : accontent will not review levaluate results of previous judgements made themselves/their firms information
↳
propel by This
engagement/serviceitanyofthesethestonesabyaucasiona
or discontinue or
esign from the on .
②
↳
overnment bthemoa
from the
resign emplying organisation g
will form pot of providing a service as well .
↳ consult
Advocacy threat Great that
·
with member
body in extreme cases
to remain associated
:
accontent will promote a client or
employers position to the point their
objectivity is compromised
accontent must refuse
I f all else fails then
anonymous basis
otamiliarity threat long
.
with whatever caused the conflict. :
a or close relationship to client/employer a professional accordant has, makes them too sympathetic to their interests or too
accepting
·
These threats will be divided into either : of the relationships work submitted to them
↳ threats to accontacts in public practice leg . audit or
according Girm) ·
Intimidation threat : the treat that a professional accontent will be deterred from
acting independentaty/objectively from actual or
perceived pressures
↳ treats to accontents in business (at
any
other type of business) these two
match up
together ey . undue influence
being exercised
·
Threats to accordants in public practices ·
Safeguards (actions that eliminate threats or reduce be acceptable levels)
I
legislation or
regulations O public practice
self interest -
a firm
having total dependence on total fres from a client 11 a self-review-auditbeam member having receibly been a director of client
compy Satguard by profession
:
having an acconbat who was not a put of the some
Safeguard by work environment : client has corporate
governace structure
member of assurancebeam having a close relationship with client/I a fir
being a member
having recently been employed and having significat influence over the team who reviewed the performance or otherwise advise as necessary that provides oversight regarding services /1 client has internal control
procedures to
G
↳ consulting
on independent 3rd porty such as directors or committee
body
losing big client //
engagement/ objectiving
or
concerned a a a audit team member
entering employment matter concerned in a service
being provided to client and the ensure in non-assurance commissions /I client has competent employees
with
with audit client subject matter information ofthe experience to make decisions
negotiations . client can
directly affect the assurance or another professional accontent
②
l
engagement ↳
discussing issues with those charged with
governance
of client / robate the seriou
.
discipling measures to promote compliance with policies and procedures eg punish
.
③
advocacy
-
promoting shoes of and it client 11 an accontact actingas on advocate
familicity-seniors having long association with client /1 acconbat accepting gifts assurace personnel/ involve another firm in the engagement // disclose the nobre lo
appoint a senior
manager member to be responsible for overseeing the adequate
litigation disputes with from client unless value is trivial // a member sered as of firms
manage to
behalf of audit in third
on or parties recently an
engagement the exont of bees functioning quality control eg appoint senior ensure adherence
of the
engagement and
.
-Tbimidation
firm threated to /I treated with
-
litigation Petertompasempigmenge accenting treatment specific
be dismissed /I client no on a transactions
, Tax consultat must act in best interest of client. Ensure compliance with law/professional competence/objectivity/
Lif additional services needed then make separate request for those services
> no assumptions allowed
-
NB3
0
G E
②
O
O
by to act with
⑧
③ integrity/objectiving then avoid those relationships even if itequires
personal advantage
⑤
· without breaching confidentiality members can
approach instutions regional forums.
Signing off of reports delegated to non-partners/in
:
cant be un
emergeny :disclose todient thecircumstancesanddaxonephibianae
Relations with other professionals : to allow for someone else to sign off
· If an accontent feels
they cont provide service due lack of skill /
knowledge then make use of a 3rd Client funds :
member cannot hold client Gunds unless
they have required financial Secto Conduct
Authority (FSCA) and
they can
poty
a a a
another referral to different firm· remember the wishes of client must be adhered to when (Greedom of choice) Prudential Authority (PA) certificate.
or a
choosing aurisos
↳ Client for additional members services if : consulting with existing accontent/on equest with
existing accontent/without releece if have bath and take due
dilligence to adher to FSCA regulations then its
okay to accept (always deposit dien6 funds without delay )
!
ask after
can
you
↳ include another members services if However dant finds suspectedbe gained illegally
They can also accontent requests accept be
·
existing
↳I f in farm of document that be converted to document to tible of
funds of
money many then take
necessory safeguards
can or
dont accept appointment if client (new) refuses to avoidunauthorised use of funds.
to to accontent communication
give you access previous
3
any Graudulent
to
when
asking previous accountant remember if
you see acts we must repot it to respective authority ensure all members
comply to rules and
legal
requirements of the country
. Also avoid
pouching clients from others as this results in
disciplinary actions
being taken
Notes
, Provide whether they are accontentant in business or accontent in public practice (state what parts are relevant to them of SAICA CPC
state
any ethical issues we can see from Scenario
concerning the accountant/auditor and the client
State
any
and all fundamental principles being threatened by the issues
(familiarity/self-interest/self-review intimidation/advocacy
/
link each threat and each issue together as a reason to validate the issue and treats (include level of threat)
such as not accepting the
Give possible safeguards engagement or removing people or stopping certain actions
Institute
Ethics for Professional Accountants :
what I
-o
-
G prof . Services based on current practices. Up to date with
legislation and technical standards
>
respect confidentiality of information result of business relationships Dont disclose to 3rd
-
, as a .
parties without proper autharily leg legal , or professional duly to disclose and dat use information to personal advantage
E with relevat laws /regulations tovoid action to discredit the profession
comply
-
any
Threats to fundamental principles : thesewe circumstances thatcreate specific threats to principles
↳ the to evaluate and address threats
Categories of threats
conceptional framework shows how
identity ,
to compliance with principles :
·
If a threat is too
significant that safeguards cant be applied :
·
self-interest threat :
a financial or other threat will influence
negatively the accontents behavior or
judgements
O decline
·
Self-review threat : accontent will not review levaluate results of previous judgements made themselves/their firms information
↳
propel by This
engagement/serviceitanyofthesethestonesabyaucasiona
or discontinue or
esign from the on .
②
↳
overnment bthemoa
from the
resign emplying organisation g
will form pot of providing a service as well .
↳ consult
Advocacy threat Great that
·
with member
body in extreme cases
to remain associated
:
accontent will promote a client or
employers position to the point their
objectivity is compromised
accontent must refuse
I f all else fails then
anonymous basis
otamiliarity threat long
.
with whatever caused the conflict. :
a or close relationship to client/employer a professional accordant has, makes them too sympathetic to their interests or too
accepting
·
These threats will be divided into either : of the relationships work submitted to them
↳ threats to accontacts in public practice leg . audit or
according Girm) ·
Intimidation threat : the treat that a professional accontent will be deterred from
acting independentaty/objectively from actual or
perceived pressures
↳ treats to accontents in business (at
any
other type of business) these two
match up
together ey . undue influence
being exercised
·
Threats to accordants in public practices ·
Safeguards (actions that eliminate threats or reduce be acceptable levels)
I
legislation or
regulations O public practice
self interest -
a firm
having total dependence on total fres from a client 11 a self-review-auditbeam member having receibly been a director of client
compy Satguard by profession
:
having an acconbat who was not a put of the some
Safeguard by work environment : client has corporate
governace structure
member of assurancebeam having a close relationship with client/I a fir
being a member
having recently been employed and having significat influence over the team who reviewed the performance or otherwise advise as necessary that provides oversight regarding services /1 client has internal control
procedures to
G
↳ consulting
on independent 3rd porty such as directors or committee
body
losing big client //
engagement/ objectiving
or
concerned a a a audit team member
entering employment matter concerned in a service
being provided to client and the ensure in non-assurance commissions /I client has competent employees
with
with audit client subject matter information ofthe experience to make decisions
negotiations . client can
directly affect the assurance or another professional accontent
②
l
engagement ↳
discussing issues with those charged with
governance
of client / robate the seriou
.
discipling measures to promote compliance with policies and procedures eg punish
.
③
advocacy
-
promoting shoes of and it client 11 an accontact actingas on advocate
familicity-seniors having long association with client /1 acconbat accepting gifts assurace personnel/ involve another firm in the engagement // disclose the nobre lo
appoint a senior
manager member to be responsible for overseeing the adequate
litigation disputes with from client unless value is trivial // a member sered as of firms
manage to
behalf of audit in third
on or parties recently an
engagement the exont of bees functioning quality control eg appoint senior ensure adherence
of the
engagement and
.
-Tbimidation
firm threated to /I treated with
-
litigation Petertompasempigmenge accenting treatment specific
be dismissed /I client no on a transactions
, Tax consultat must act in best interest of client. Ensure compliance with law/professional competence/objectivity/
Lif additional services needed then make separate request for those services
> no assumptions allowed
-
NB3
0
G E
②
O
O
by to act with
⑧
③ integrity/objectiving then avoid those relationships even if itequires
personal advantage
⑤
· without breaching confidentiality members can
approach instutions regional forums.
Signing off of reports delegated to non-partners/in
:
cant be un
emergeny :disclose todient thecircumstancesanddaxonephibianae
Relations with other professionals : to allow for someone else to sign off
· If an accontent feels
they cont provide service due lack of skill /
knowledge then make use of a 3rd Client funds :
member cannot hold client Gunds unless
they have required financial Secto Conduct
Authority (FSCA) and
they can
poty
a a a
another referral to different firm· remember the wishes of client must be adhered to when (Greedom of choice) Prudential Authority (PA) certificate.
or a
choosing aurisos
↳ Client for additional members services if : consulting with existing accontent/on equest with
existing accontent/without releece if have bath and take due
dilligence to adher to FSCA regulations then its
okay to accept (always deposit dien6 funds without delay )
!
ask after
can
you
↳ include another members services if However dant finds suspectedbe gained illegally
They can also accontent requests accept be
·
existing
↳I f in farm of document that be converted to document to tible of
funds of
money many then take
necessory safeguards
can or
dont accept appointment if client (new) refuses to avoidunauthorised use of funds.
to to accontent communication
give you access previous
3
any Graudulent
to
when
asking previous accountant remember if
you see acts we must repot it to respective authority ensure all members
comply to rules and
legal
requirements of the country
. Also avoid
pouching clients from others as this results in
disciplinary actions
being taken
