MIPPs Into and Framework

Question 1

What is Conceptual Framework?

Answer 1

To determine whether threats to a member’s compliance with the rules can be reduced to an acceptable level by application of safeguards

Question 2

Seven broad categories of Threats?

Answer 2

1 Management participation threat
2 Adverse Interest threat
3 Advocacy threat
4 Self-interest threat
5 Self-review threat
6 Familiarity threat
7 Undue Influence threat

Question 3

Management participation threat?

Answer 3

Take on role of client management (board of directors)

Question 4

Adverse Interest threat?

Answer 4

Client sues or threatens to sue firm (crosswise)

Question 5

Advocacy threat?

Answer 5

We advocate for client only pertains to nonattest clients

Question 6

Self-interest threat?

Answer 6

Member has financial interest in client

Question 7

Self-review threat?

Answer 7

Conflict of interest (do bookkeeping for attest client)

Question 8

Familiarity threat?

Answer 8

Become too familiar (Family/friends works for client or ex coworker joins client)

Question 9

Undue Influence threat?

Answer 9

Clients threaten firm to get what they want

Question 10

Three kinds of safeguards?

Answer 10

1 Created by professional, legislation or regulation
2 Implemented by client
3 Implemented by firm