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Hello Kim, hope you are well
Could you please tell me the content and the structure of the client acceptance checklist? Because there is a question d for me to evaluate weakness in Pascal & Co’s acceptance in Q1 of AAA December 2022, and there is nowhere tell me about it, thank you
sincere
The syllabus doesn’t specifically mention a checklist in this context and the BPP text doesn’t cover the “content and structure” of such a document. Did the Q ask you for the “content and structure” of a checklist? Or it asked only to evaluate weaknesses?
If the latter, you don’t need a “checklist” for this, but rather an “ideas list”. The relevant LO is:
“3. Professional appointments
a) Explain the matters to be considered and the procedures that an audit firm/professional accountant should carry out before accepting a specified new client/engagement or continuing with an existing engagement, including:[3]
i) client acceptance …”To identify weaknesses, you need to consider what they did (or more likely didn’t) do against what they should have done. For example, did the firm “skimp” on CDD/KYC procedures? Or not bother communicating with the predecessor auditor? Were commercial considerations allowed to take precedence over professional/ethical considerations?
Obviously I don’t have the Q (nor will I, unless it is one of the sample published next month), but a lot of candidates will find some parts of Qs hard if they haven’t come across them before. This is what helps differentiate a prizewinner – it should not be the difference between pass and fail if you made a passable attempt at the remainder of the Q and attempted all other Qs and parts thereof.
Yes, technically, for the ‘weakness’ kind questions, the general method you mentioned is quite useful. But there are some details that confused me a lot, and also this is the reason why I ask you for the content and structure of the client checklist .
For example, the answer says that ‘Overall, the acceptance document appears too brief and there is a lack of information to support the conclusions within the document’ and ‘There is no section evidencing and justifying the type of customer due diligence required’ etc. Most of them are talking about the structure or the content of the checklist. So that really confused me.
And if there are some ways I can send the Qs and As to you, I’d be glad to do so, and we can discuss this question further
Thank you again
You completely threw me by saying this was Monday’s exam, this Q is from M/J22.
The requirement was:
“conduct a review of the information contained in the Meadow Co client acceptance assessment to evaluate weaknesses in Pascal & Co’s acceptance procedures and recommend improvements which should be implemented.”This part was for just 8 marks – alongside comments on the PROCEDURES associated with client acceptance (CDD, previous auditor, etc) there are a couple of comments about the form being too brief and lacking supporting evidence – to my mind this is stating the obvious (given the lack of procedures) and you don’t need to know any more about a checklist than was indicated.
I suggest you download the relevant examiner’s report https://www.accaglobal.com/pk/en/student/exam-support-resources/professional-exams-study-resources/p7/examiners-reports1.html – the examiner’s comments focus on the procedures that were required.
In AAA, the examiner will use “vehicles” that candidates might have not seen before – you have to not get hung up about them, focusing on the substance (e.g. weaknesses) rather than form (e.g. checklist).
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