Page 36 - AAA Integrated Workbook STUDENT S18-J19

Chapter 3

Examples of safeguards: Examples of safeguards:
Threat
Listed clients Non-listed clients

Internal audit INT Syllabus: INT Syllabus:

 Services must not be in  Separate teams must be
relation to financial used.
accounting systems
UK Syllabus:
UK Syllabus:
 Consider whether
 Internal audit services are objectivity will be impaired
prohibited
 Consider whether informed
management is in place

 Separate teams must be
used.

Tax calculations  Tax calculations are INT Syllabus:
for inclusion in prohibited
the financial  Obtain advice from an
statements [Note that completion of tax external tax professional
returns for a client is NOT a
threat] UK Syllabus:

 Consider whether
objectivity will be impaired

 Consider whether informed
management is in place

 Separate teams must be
used.

Advocacy

 Representing The audit firm must not act for The audit firm must not act for
the client the audit client in this way. Any the audit client in this way. Any
request for such services must request for such services must
 Promoting the be politely declined be politely declined
client

 Negotiating
on behalf of
the client

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