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FINANCIAL REPORTING AND ETHICSinternal control measures. The threats which occur and discussed under(a) above are ‘self-review’, and ‘self-interest’.(d)(e)(f)(g)(h)Provision of Accounting And Bookkeeping ServicesSuch services include preparing accounts and bank reconciliationstatements. When the professional firm subsequently audits the financialstatements, it creates ‘self-review’ threat.Valuation ServicesThe concept of valuation involves assigning an estimated price or valuein present day terms. It comprises the making of assumptions or futureactions or developments. Undertaking valuation services will give riseto ‘self-review’ threat.Taxation ServicesWhere the idea of providing tax planning and other tax advisory servicesis duly approved by the tax authority or existing law, such a servicemay be rendered. However, a ‘self-review’ threat may arise where thetaxation advice will affect matters to be shown in the financialstatements.Internal Audit ServicesThe provision of internal audit service to an audit client brings about a‘self-review’ threat to the fundamental principle of independence if theaudit firm or professional accountant uses the internal work in theperformance of a subsequent external audit.Information Technology (IT) Systems ServicesServices which may be performed include:(i)Design or implementation of IT systems which are not related tointernal control over financial reporting; and(ii)Design or implementation of IT systems which do not generateinformation which forms a significant part of the accountingrecords or financial statements.However, the services not deemed to create a threat to independence,parts of which are listed above, have the proviso that the audit firm’spersonnel do not assume management responsibility for theirimplementation.(i)Litigation Support ServicesThese may include such activities as acting as an expert witness,computing estimated amounts which could become receivable or196
ETHICAL THREATS AND SAFEGUARDSpayable, arising from litigation or legal dispute and assisting withdocument management and retrieval. These services may give rise to a‘self-review’ or ‘advocacy’ threat.(j)(k)(l)Legal ServicesAccording to IFAC (2009), ‘legal services’ are defined as “any servicesfor which the person providing the services must either be admitted topractice law before the courts of the jurisdiction in which such servicesare to be provided or have the required legal training to practice law.”The supply of legal services to an organisation which is an audit clientmay give room to ‘self-review’ and’ advocacy’ threats, which have beendiscussed along with others under chapter 11.9.2.2 of this study pack.Recruiting ServicesRendering recruiting services to an audit client, may bring about thethreats of ‘self-interest,’ ‘familiarity’ and ‘intimidation’ or ‘trust.’Corporate Finance ServicesSuch activities include being of assistance to an audit client informulating corporate strategies to meet diverse and ever changingeconomic indices, and identifying possible segments or targets for theclient to purchase. The attendant threats are ‘advocacy’ and ‘self review’in nature and essence.10.5 ETHICAL THREATS TS IN ACCOUNTING, AUDITING AND ASSURANCESERVICE, OTHER FINANCIAL SERVICES AND SAFEGUARDS10.5.1 Different ent Types of Ethical ThreatsCompliance with the fundamental principles may potentially or actuallybe threatened by a broad range of circumstances. In “ICAN’s Rules ofProfessional Conduct for Members” threats to objectivity identifiedinclude the following:(a)The self-interest threatThis may arise from a financial interest in a client or jointlyholding a financial interest with a client “which will inappropriatelyinfluence the professional accountant’s judgment or behaviour.”(IFAC, 2009).(b)The self – review threatAn example of a self-review threat is the discovery of a significanterror during a re-evaluation of the work of a professional accountantin public practice, or a non-audit assignment needs to bechallenged in reaching conclusions.197
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FINANCIAL REPORTING AND ETHICS1.3.3
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ACCOUNTING AND REPORTING POLICIESsu
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ACCOUNTING AND REPORTING POLICIES(j
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ACCOUNTING AND REPORTING POLICIES(i
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ACCOUNTING AND REPORTING POLICIES2.
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3AMALGAMATION, ABSORPTION ANDRECONS
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AMALGAMATION, ABSORPTION AND RECONS
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4ANALYSIS AND INTERPRETATION TION O
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ANALYSIS AND INTERPRETATION OF FINA
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5ACCOUNTING STANDARDS5.0 LEARNING O
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ACCOUNTING STANDARDS(i)(ii)(iii)(iv
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ACCOUNTING STANDARDSThere is no SAS
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ACCOUNTING STANDARDS5.2.4 Borrowing
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ACCOUNTING STANDARDS(iii)Certain pe
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ACCOUNTING STANDARDSby venture capi
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ACCOUNTING STANDARDSIFRS 7 Financia
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ACCOUNTING STANDARDSactivity, non-c
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ACCOUNTING STANDARDSin the year inc
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ACCOUNTING STANDARDS(v)(vi)(vii)whe
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ACCOUNTING STANDARDS(v)Actions requ
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ACCOUNTING STANDARDSAccounting stud
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6ETHICAL FRAMEWORK, CONCEPTSAND VAL
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ETHICAL FRAMEWORK, CONCEPTS AND VAL
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Page 145 and 146: ETHICAL FRAMEWORK, CONCEPTS AND VAL
Page 147 and 148: 7THE ENVIRONMENT: CORPORATE,PROFESS
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Page 173 and 174: PROFESSIONAL ETHICSobjectivity are
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Page 177 and 178: PROFESSIONAL ETHICSabout conflicts
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Page 181 and 182: PROFESSIONAL ETHICSA. III onlyB. II
Page 183 and 184: 9DECISION MAKING IN ETHICS9. 0 LEAR
Page 185 and 186: DECISION MAKING IN ETHICS9.2 A FRAM
Page 187 and 188: ETHICAL THREATS AND SAFEGUARDS(d)We
Page 189 and 190: DECISION MAKING IN ETHICS4. A perso
Page 191 and 192: 10ETHICAL THREATS TS AND SAFEGUARDS
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Page 207 and 208: 11CORPORATE GOVERNANCE11.0 LEARNING
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Page 219 and 220: CORPORATE GOVERNANCE11.6.1 The law
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Page 225 and 226: CORPORATE GOVERNANCE(a)(b)Greenbury
Page 227 and 228: CORPORATE GOVERNANCE11.9.2 Boards d
Page 229 and 230: CORPORATE GOVERNANCErelationship wi
Page 231 and 232: CORPORATE GOVERNANCE(e)(f)(g)(h)(i)
Page 233 and 234: CORPORATE GOVERNANCE(vi)Inquisitive
Page 235 and 236: CORPORATE GOVERNANCE(e)ConsultancyA
Page 237 and 238: CORPORATE GOVERNANCEThe incoming au
Page 239 and 240: CORPORATE GOVERNANCEIn summary, acc
Page 241 and 242: CORPORATE GOVERNANCEAccording to Th
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SOCIAL AND ENVIRONMENTAL ISSUES IN
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APPENDIX ISUGGESTED SOLUTIONS TO RE
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SUGGESTED SOLUTIONS TO REVISION QUE
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SUGGESTED SOLUTIONS TO REVISION QUE
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APPENDIX IICOMPREHENSIVE QUESTIONS
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COMPREHENSIVE QUESTIONS AND SUGGEST
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APPENDIX IIICASE STUDY 1Karsashi, a
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CASE STUDIES(iii)(iv)The floor sale
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CASE STUDIESShare price and dividen
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CASE STUDIESSUGGESTED SOLUTION(A) A
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CASE STUDY 3The following informati
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CASE STUDIESCASE STUDY 4Ologobojo i
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APPENDIX IVTable 1:SUMMARY OF INTER
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SUMMARY OF INTERNATIONAL ACCOUNTING
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APPENDIX VGLOSSARY OF TERMSAbsorpti
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GLOSSARY OF TERMSEthical Objectivis
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APPENDIX VIBIBLIOGRAPHYChambers Ham
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APPENDIX VIISTUDY AND EXAMINATION T
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STUDY AND EXAMINATION TECHNIQUES7.3
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INDEXAAbsorption, 17, 19, 39, 40, 4
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INDEXProfessional Behaviour, 136, 1
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