For Each of the Following Safeguards, Identify Whether They Are $\bullet$

question 55

Essay

For each of the following safeguards, identify whether they are:
$\bullet$ safeguards created by the profession, by legislation or by regulation
$\bullet$ safeguards developed by the firm
$\bullet$ safeguards which are engagement specific
$\bullet$ safeguards within the client's systems.
1 disclosure of fees
2 competence of employees
3 using different partners and teams with separate reporting lines for the provision of non-assurance services to an assurance client
4 professional standards and pronouncements
5 timely communication of policies and procedures to all partners and professional staff
6 internal procedures to ensure objective decisions on engagements
7 professional review by other professional accountants
8 involving another firm to perform or re-perform part of the engagement
9 corporate or other governance regulations
10 firm leadership which emphasises compliance and ethics.

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Definitions:

Indirect Method

An approach used in cash flow statement preparation that adjusts net income for changes in balance sheet accounts to derive operating cash flows.

Operating Activities

Activities that relate to the primary operations of a company, such as sales, supply, production, and administrative services.

Salaries

Regular payments made to employees for their services, typically expressed as an annual sum but paid in regular installments.

Statement of Cash Flows

A financial report that shows cash inflows and outflows from operating, investing, and financing activities over a specific period.