Sir, I confuse the threats coursed by overring client with taxation services.
which tax services are not allowed and which are allowed.
does tax service cause other threat apart form self review threat.
and what are the save gauds to reduce the threat.
thanks in advance.
Ask the Tutor ACCA AA
Ethics
Tax services comprise a broad range of services, including activities such as:
? Tax return preparation - is usually "routine" and based on historical information so is not usually considered a threat
? Tax calculations for the purpose of preparing the accounting entries - since tax liabilities appear in the SoFP there is a self-review threat. If material, this is PROHIBITED for a public interest entity. For non-PIE client will need "standard" safeguards (by which I mean separate teams and appropriate reviewer)
? Tax services involving valuations - if valuation reflected in financial statements is MATERIAL there is SELF-REVIEW threat.
? Assistance in the resolution of tax disputes - would most obviously give rise to ADVOCACY threat.
There is also "tax planning and other advisory services" but this is a more complex area and best ignored at AA(!)
That's clear, thank you.
My pleasure!
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