Financial Reporting and Ethics - The Institute of Chartered ...

FINANCIAL REPORTING AND ETHICS(xii)(xiii)(xiv)(xv)Designating a member of senior management to be responsiblefor overseeing the adequate functioning of the firm’s qualitycontrol system;Advising partners and professional staff of those assuranceclients and related entities from which they must be independent;A disciplinary mechanism to promote compliance with policiesand procedures; andPublished policies and procedure to encourage and empowerstaff to communicate to senior levels within the firm any issuerelating to compliance with the fundamental principle thatconcern them.(b)Engagement-specific safeguards in the work environment include:(i)(ii)(iii)(iv)Involving an additional professional accountant to review thework done or otherwise advise as necessary;Consulting an independent third party, such as a committee ofindependent directors, a professional regulatory body or anotherprofessional accountant;Discussing ethical issues with those charged with governance ofthe client;Disclosing to those charged with governance of the client;(v)(vi)(vii)Disclosing to those charged with governance of the client thenature of services provided and extent of fees charged;Involving another firm to perform or re-perform part of theengagement; andRotating senior assurance team personnel.Depending on the nature of the engagement, a professional accountantin public practice may also be able to rely on safeguards that the clienthas implemented. However, it is not possible to rely solely on suchsafeguards to reduce threats to an acceptable level.(c)Safeguards within the client’s systems and procedure includethe following:(i) A client appoints a firm in public practice to perform an engagement,persons other than management ratify or approve the appointment;(ii)The client has competent employees with experience and seniorityto make managerial decisions; and204