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- February 23, 2017 at 8:07 pm #373933
Hello
The two types of procedures regarding money laundering ..are mentioned as client acceptance procedures ( before saying yes or accepting client) and know your client procedures ( kyc …after acceptance)
I find them bit interchangeable …as if u know a client enough to accept …
Can u please list few procedures under those two main categories to make it more clear ..
Thanks in advance
February 24, 2017 at 9:02 am #373987I believe that the ‘know your client’ procedures take place BEFORE acceptance of a new assignment
There’s little point in them taking place after appointment
These required procedures are there to enable the auditor to establish whether there may be any implications that could cause threats to compliance by the auditor with any of the fundamental principles detained in the Ethics Code
This Code of Ethics details examples of potential threats to an auditor’s integrity or professional behaviour such as queries concerning the conduct or reputation of the potential client’s owners, management or activities
Client acceptance procedures other than those associated with ‘know your client’ would include such practical matters as:
Auditor’s ability to carry out a professional assignment?
Existence of the in-house skills and experience to complete this assignment
Consideration of the locations, time scales, deadlines, restrictions, compliance requirements, financial reporting framework, fee level (and thus also threat to fee dependency!)These concerns are all inward looking – the auditor questioning him (her) self of the ability to take on the assignment
These are just some of the examples that should go through the mind of the auditor before acceptance of the audit assignment and are quite clearly distinct from the ‘know your client’ procedures where enquiries are made of sources outside the audit firm
OK?
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