Practice Management: Advertising Flashcards
Tendering, advertising, fee, acceptance
What title can ACCA members use to describe themselves?
Chartered Certified Accountants or Certified Accountants
Members may also use the letters ACCA or FCCA if they are fellows.
Can ACCA members use their title in the registered names of companies?
No
For example, a company cannot be named John Smith Certified Accountant Ltd.
What conditions must be met for an accountancy firm to describe itself as an ‘ACCA practice’?
At least half of the partners are ACCA members and control at least 51% of the voting rights
This applies to the firm’s partnership agreement or constitution.
What description can a firm have if all its partners are ACCA members?
Members of the Association of Chartered Certified Accountants
This can be used on their professional stationery.
What should a mixed firm avoid using in its description?
Certified Accountants and Chartered Accountants or similar
This could be misleading.
What statement can a mixed firm print on their stationery?
The partners of this firm are members of either the Association of Chartered Certified Accountants or the Institute of Chartered Accountants in England and Wales
This clarifies the membership of the partners.
What should a practice name reflect?
The dignity of the profession
A practice name should not mislead or confuse with another firm’s name.
Can a sole practitioner add ‘and partners’ to their practice name?
No
This is not permitted.
Who may use the ACCA logo?
A firm that has at least one ACCA member as a partner or director
This includes use on professional stationery and websites.
How should the ACCA logo be presented?
Separate from the firm’s logo, clearly recognisable size and colour
This ensures the logo’s visibility.
Where can members download the ACCA logo?
From the ACCA website in electronic format
This allows for proper usage of the logo.
Lowballing result in what threat?
Result in self-interest threat as the auditor may try and keep their client happy in order to win other contracts with them
What is A contingency fee ?
arrangement made at the outset of an engagement under which a predetermined amount or percentage is payable to the accountant upon the completion of a specified event, or the achievement of a particular outcome
Why contidency fees is not allowed?
lead to practitioners forcing a specific outcome that would not normally have been obtained to try and achieve higher fees. E.g. Unusually rapid completion of an audit.
(No due care and objectivity).
The ACCA’s position is that fees should not be charged on a percentage, contingency or similar basis, except ?
Insolvency work
What auditors should consider when setting a fee?
• Seniority of the persons necessarily engaged on the work
• Time spent by each person
• Overhead expenses of the firm
In addition, the following factors may also be applicable:
• Degree of risk and responsibility that the work entails
• Urgency of the work to the client
• Importance of the work to the client
The engagement letter specifies the nature of the contract between the firm and client.
Its purpose is to:
• Minimise the risk of any misunderstanding between the practitioner and client
• Confirm acceptance of the engagement
• Set out the terms and conditions of the engagement.
Should engagement letter be reviewed?
Yes. every year to ensure that it is up to date but does not need to be reissued every year unless there are changes to the terms of the engagement.
Possible safeguards - lack of integrity from the client (involve in ML)
- Performing ?
- performing client due dilligence in accordance with ML regulations
Possible safeguards - lack of integrity from the client (involve in ML)
Obtaining ?
Obtaining detailed knowledge of the client before accepting nomination
Possible safeguards - lack of integrity from the client (involve in ML)
Securing ? to implement ?
Securing the client’s commitment to implement strong ICs and the highest standars of CG
Possible safeguards - lack of integrity from the client (involve in ML)
Allocating
Allocating senior partner of the firm to be the engagement partner rather than a more junior oartner
Possible safeguards - lack of integrity from the client (involve in ML)
Performing xxx
Performing an Engagement Quality Review (eqr)
