Threats Arising from Provision of Non-Assurance Services (3)

Question 1

What threat might tax planning and other tax advisory services create?

Answer 1

A self-review or advocacy threat

Question 2

Safeguards for tax planning (audit)

Answer 2

Services must not be performed by a member of the audit team

Question 3

Safeguards for tax planning (independent)

Answer 3

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

Question 4

Safeguards for tax planning (authorities)

Answer 4

Obtain pre-clearance from tax authorities

Question 5

When must tax planning and other tax advisory services not carried out? (Service)

Answer 5

Services may not be provided where effectiveness of tax advice depends on particular accounting treatment

Question 6

When must tax planning and other tax advisory services not carried out? (presentation)

Answer 6

Presentation in FS and audit team has reasonable doubt as to appropriateness of related accounting treatment

Question 7

When must tax planning and other tax advisory services not carried out? (outcome)

Answer 7

Outcome/consequences of tax advice will have material effect on financial statements being audited