- September 16, 2020 at 2:05 pm #585833salman7Participant
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In matters to be considered in evaluating the invitation from an existing audit client to perform an assurance engagement on the Social and Environmental KPIs of Sustainability Report of Annual Report, can I answer that:
“although there is a self-interest threat but the assurance engagement is permissible with safeguards (approval of the audit committee, independent QC review pre and post-issuance of audit report by an external party or by firm’s professional body, second partner review of firm’s objectivity) as it could be the first year that the total fees of the firm from the ‘major client’ is exceeding 15% of firm’s total fees. The same safeguards will apply for future years as well based on auditor’s judgement”
I am not sure about the safeguards as the first two are menioned in the CODE and the third one is mentioned in ACCA suggested answer.
Always thanks for your comments.September 17, 2020 at 6:22 pm #585961Kim SmithKeymaster
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Please go to the sticky post “Changes from June 2020 to September/December 2020 ACCA exams” to navigate to technical changes relating to safeguards. I cannot mark/grade/assess an individual student’s suggested answer points. You should have a current revision kit for reference.
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