Threats Arising from Provision of Non-Assurance Services (1)

Question 1

What are provisions of non-assurance services?

Answer 1

Preparing accounting records and financial statements

Internal audit services

Tax services

Question 2

What threat might providing accounting and bookkeeping services to an audit client create?

Answer 2

A self-review threat

Question 3

Why is providing these services to a client a self-review threat?

Answer 3

It is unlikely that the firm will criticise its own work and decisions

Question 4

If the cleint is not a public interest entity safeguards (accounting)

Answer 4

Accounting services should not be performed by audit team staff

Question 5

If the cleint is not a public interest entity safeguards (source)

Answer 5

Client must provide all source data

Question 6

If the cleint is not a public interest entity safeguards (journal)

Answer 6

Client must approve all journal entries

Question 7

If the cleint is not a public interest entity safeguards (committee)

Answer 7

Discuss non-audit services with audit committee

Question 8

If the client is a public interest entity safeguard (provision)

Answer 8

The provision of accounting or bookkeeping services is not permitted