The Accountant In Practise

Question 1

How to ensure objectivity is not compromised?

Answer 1

Avoid 
Owning shares in client companies
Allowing relatives to own shares in client companies
Giving or receiving loans 
Trustee in client companies

Do not audit accounts you have prepared (self evaluate)
Do not have personal relationships (self interest threat)

Question 2

Accepting tax assignments

Answer 2

Only undertake taxation work on the basis of full disclosure and act in good faith and honesty

Question 3

Managing the risk of a potential liability

Answer 3

Customer due diligence

Identify terms of the engagement

Question 4

Policies for handling client monies

Answer 4

Keep client money separate/separate bank account
Bank client money without delay
Only release money when instructed by client
Keep full records
Over £2000 a month should be put in interest bearing account
Interest belongs to the client

Question 5

What does holding client monies threaten

Answer 5

Professional behaviour - theft
Integrity - honest
Theft act (1968) - dishonestly appropriate property belonging to another with the intentions of depriving them of it

Question 6

Dealing with inappropriate client behaviour - ML, tax returns, tax errors

Answer 6

ML - suspicion report to MLRO or direct to NCA

Tax returns - not associate with false statements, obscures information

Tax errors - inform client to correct error, if they refuse then resign from engagement and report clients refusal To MLRO or NCA

Question 7

Confidentiality and disclosure revisited -

Principles of confidentiality
Disclosure appropriate
Disclosure or not?

Answer 7

• refrain from disclosing info without authorisation unless legal right to do so
  Use info to there advantage

Permitted by law and authorised by client (ML)
Professional duty to disclose - public interest

Can parties be harmed by disclosing info
Is it based on true facts
Reporting to the appropriate recipients

Question 8

Other considerations in practise

Answer 8

Liability disclaimers - terms and conditions
Discounted fees - low fees may threaten professional competence and due care due to less time spent on work, tight budget
Attracting new clients - unethical marketing activities, misleading info in adverts