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:

Invested Assets

Assets that have been allocated or invested in various forms such as stocks, bonds, or real estate, aiming for a financial return.

Profit Margin Factor

A measure of a company's earnings (or profits) relative to its revenue, showing the percentage of each dollar of sales that results in profit.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of multiple investments.

Income From Operations

The earnings generated from a company's regular core business operations, excluding deductions of interest and taxes.