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Love You Thousand Times

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Submitted By helenkoh89
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Chapter 1 Professional Ethics & Conduct * Non-auditor services. Pg 654 * Whether auditor can prepare financial statement for the bank? 1. Listed (Cannot) 2. Not Listed (Can) Section 201 of SOX
-Provided of some safeguards
-Not involved in decision making * Gift & Hospitality pg 644 * Amount is insignificant X Amount is significant * Fees & Pricing pg 651 * Effect the quality of the job * Low pricing “ low bolling” * If you’re the auditor of B, you notice there is a mistake, you told them to change but they refuse. You resign. They appoint another auditor. Can you review the successor? * Can review if you ask permission from client * If without the consent from the client, you can’t review ( breach of confidentiality) * You’re auditor for A. B is the supplier for A. In the same time, B prepare financial statement, found that A haven’t pay the money, B ask you to investigate why A haven’t pay? Can you as the auditor for A reveal the information? * You can’t reveal * Issue of confidentiality; issue of interest pg 643 * You can’t help B because you’re the auditor for A. * Concept True & Fair pg 21 * Is there a meaning of True & Fair? * Yes. It is a legal term as mentioned in Companies Act 1965. There is no proper definition on true and fair. * It is not correct or error ( guarantee or giving absolute assurance) * It is only give reasonable assurance. This is an abstract (subjective) concept. * Why auditors give True & Fair? * What is True & Fair? * “True” – where facts & information that can be verified with high degree of certainty. * “Fair”- It is very subjective. Where facts or information that cannot be verified with high degree of certainty. Eg provision for doubtful debts (5%)

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