Exposure Draft - ACRA

CODE OF PROFESSIONAL CONDUCT AND ETHICS FOR PUBLIC ACCOUNTANTS
SG290.187A A public accountant, firm or network firm should not provide to a statutory audit
client that is an entity of significant public interest (ESPI) services that involve:
(a) the design and implementation of financial information technology systems that
are used to generate information forming part of a client‘s financial statements;
or
(b) either the design or the implementation of financial information technology
systems that are used to generate information forming part of a client‘s
financial statements.
The following provisions apply to other clients.
290.187 The provision of services by a firm or network firm to a financial statement audit client
that involve the design and implementation of financial information technology systems
that are used to generate information forming part of a client‘s financial statements may
create a self-review threat.
290.188 The self-review threat is likely to be too significant to allow the provision of such
services to a financial statement audit client unless appropriate safeguards are put in
place ensuring that:
(a)
(b)
(c)
(d)
(e)
The audit client acknowledges its responsibility for establishing and monitoring a
system of internal controls;
The audit client designates a competent employee, preferably within senior
management, with the responsibility to make all management decisions with
respect to the design and implementation of the hardware or software system;
The audit client makes all management decisions with respect to the design and
implementation process;
The audit client evaluates the adequacy and results of the design and
implementation of the system; and
The audit client is responsible for the operation of the system (hardware or
software) and the data used or generated by the system.
290.189 Consideration should also be given to whether such non-assurance services should be
provided only by personnel not involved in the financial statement audit engagement
and with different reporting lines within the firm.
290.190 The provision of services by a firm, or network firm, to a financial statement audit
client which involve either the design or the implementation of financial information
technology systems that are used to generate information forming part of a client‘s
financial statements may also create a self-review threat. The significance of the threat,
if any, should be evaluated and, if the threat is other than clearly insignificant,
safeguards should be considered and applied as necessary to eliminate the threat or
reduce it to an acceptable level.
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