- 6 Marks
AAA – April 2022 – L3 – Q1b – Professional responsibility and liability
Explain parties not allowed to own financial interest in a client and identify relevant safeguards.
Question
Where an audit firm owns shares or is a trustee of a trust that holds shares in a client, there is said to be a financial interest in the client’s affairs. According to the IESBA, some selected parties are not allowed to own direct or indirect material financial interest in a client.
Required: i) Explain THREE (3) parties that are not allowed to own direct or indirect financial interest in a client. (3 marks)
ii) Identify THREE (3) safeguards that may be relevant in relation to direct or indirect financial interest in a client. (3 marks)
Find Related Questions by Tags, levels, etc.
- 6 Marks
AAA – April 2022 – L3 – Q1b – Professional responsibility and liability
This Question Has a Case Study:
Explain parties not allowed to own financial interest in a client and identify relevant safeguards.
Question
- Tes Case Study
Where an audit firm owns shares or is a trustee of a trust that holds shares in a client, there is said to be a financial interest in the client’s affairs. According to the IESBA, some selected parties are not allowed to own direct or indirect material financial interest in a client.
Required: i) Explain THREE (3) parties that are not allowed to own direct or indirect financial interest in a client. (3 marks)
ii) Identify THREE (3) safeguards that may be relevant in relation to direct or indirect financial interest in a client. (3 marks)
Find Related Questions by Tags, levels, etc.