ACCAP7passcard.ppt

1.5 Chapter 1 International regulatory frameworks for audit and assurance services Money laundering The practical process Placing Layering Integration The auditor should also be aware of related party and unusual transactions which may indicate money laundering See Article by Kim Smith 4th Feb 2005 for more background Money laundering – ACCA Guidance Internal controls policies Client identification Record keeping Recognition of suspicion Reporting suspicious transactions Tipping off ISA 250: Laws and regulations Issues Businesses are exposed to many legal regulations Auditors have expertise in company law but not necessarily: Employment law Health and safety law Social and environmental laws and regulations Other business specific regulatory issues ISA 250: Law and regulations Auditor’s report Chapter 2 Code of ethics and conduct The importance of ethics The audit profession is engaged in the provision of a socially important function For the audit report to have credibility and fulfil its purpose those who sign it must behave and be seen to behave in an ethical manner Recently question marks have arisen over the ethical qualities of the profession Hence the importance of ethics in both a real and exam world context The conceptual framework IFAC and ACCA have taken a principles-based approach to ethics rather than issue a detailed set of rules Advantages of an ethical framework over a set of rules: Forces active consideration in every situation Prevents narrow interpretation Allows for variations in situations Can adapt to changing environment And can contain specific prohibitions where necessary The Fundamental Principles Integrity Objectivity Professional Competence Due Care Confidentiality Professional Behaviour Safeguards Fall into three categories Created by the profession, legislation or regulation In the work environment Created by the individual Question practice – end of Chapter 2 Chapter 3 Professional liability ISA 240: Fraud ISA 240: Fraud Key Co