Safeguards

Question 1

What may safeguards reduce?

Answer 1

Threats to the fundamental principles due to conflicts of interest

Question 2

Example of safeguard (Notify)

Answer 2

Notify all known relevant parties and obtain their consent

Question 3

Example of safeguard (Engagements)

Answer 3

Use of separate engagement letters

Question 4

Example of safeguard (Procedures)

Answer 4

Procedures to prevent access to information e.g. passwords

Question 5

Example of safeguard (Guidelines)

Answer 5

Clear guidelines for members of each engagement team on issues of security and confidentiality

Question 6

Example of safeguard (Agreement)

Answer 6

use of confidentiality agreements signed by employees and partners of the firm

Question 7

Example of safeguard (Review)

Answer 7

Regular review of application of safeguards by an independent partner

Question 8

Example of safeguard (Independence)

Answer 8

Advise one or more cleints to seek additional independent advice