Threats Arising from Provision of Non-Assurance Services (2)

Question 1

What threat might providing tax services to an audit client create (self-review)?

Answer 1

Self-review or advocacy threats

Question 2

What does tax return preparation usually?

Answer 2

Not create a threat

Question 3

What are tax returns based on

Answer 3

Historical information and principally involve analysis and presentation of such historical information under existing tax law

Question 4

What must management take?

Answer 4

Responsibility for the tax returns

Question 5

What threat might providing tax services to an audit client create (calculations)?

Answer 5

Tax calculations for the purpose of preparing accounting entries

Question 6

What threat do calculations that will be subsequentially audited by firm create?

Answer 6

A self-review threat

Question 7

What is a factor in evaluating the level of threat?

Answer 7

Whether calculations will have a material effect on the financial statements

Question 8

Safeguards for tax calculations (team)

Answer 8

Calculations must not be performed by member of audit team

Question 9

Safeguards for tax calculations (independent)

Answer 9

Independent review of audit work should be conducted by a review who was not involved in providing the service

Question 10

Safeguards for tax calculations (public interest entities)

Answer 10

Tax calculations may not be performed