Page 37 - AAA Integrated Workbook STUDENT S18-J19

Code of ethics and conduct

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

Intimidation

Fee dependency As for self-interest threat As for self-interest threat

Audit partner INT Syllabus: INT Syllabus:
leaves to join the
client  Financial statements  Review the composition of
covering a 12 month period the team
must have been issued by
the entity and the partner  EQCR
must not have been
involved in the audit of UK Syllabus:
those financial statements
 The firm must resign if the
UK Syllabus: partner has acted as
engagement partner in the
 The firm must resign if the year prior to the
partner has acted as appointment
engagement partner in the
2 years prior to the
appointment

Personal  Remove the person from  Remove the person from
relationships the team the team

Litigation with the  Discuss the matter with the  Discuss the matter with the
client audit committee audit committee

 External review of the audit  External review of the audit
work, or work, or

 Withdraw from the  Withdraw from the
engagement engagement

Illustrations and further practice

More examples of threats and safeguards are given in Chapter 3 of the Study
Text

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