Section 9 - Due Diligence Flashcards
What is adequate supervision?
Ability to undertake necessary due diligence to provide comfort required to assume professional accountable for those they are supervising
What must a supervising member have knowledge of regarding those they supervise? If they dont have these they will violate the foresters act/professional misconduct
Their experience, knowledge and training in areas which would otherwise be done by a registered member, and knowledge of all the activities they are taking part in because they are accountable
What is some due diligence advice for relying on others?
Use members of professional associations or if no assn then qualified, check qualifications, use professionally independent people, maximise oersonal knowledge, delegate tasks not accountability, document all the above
Adequate documentation is
The cornerstone of due diligence and professional reliance.
Documentation provides due diligence and is adequate when…
Records and docs are up to standards, updated when appropriate and properly filed.
What is professional reliance?
Relying on professional opinion based on an objective assessment of reasonableness.
What is appropriate document retention?
There is no set time limit, but depends on risk associated with destruction.
What are the two situations in which a fp has to retain documents?
Self assessment to be kept for six years. Professional documents must be able to be retrieved electronically or on paper, but no time limit set.
What is due diliegence?
Implies comepleteness and correctness with checkists, sops, and must be documented. Taking all necessary steps to ensure desired outcome is achieved or negative is minimized.
