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- February 13, 2020 at 6:58 am
I have some question about Opentuition AAA notes
Under Chapter 4 – Solution 2 – Safeguards to reduce threat to an acceptable level (only five were asked for)
1.The last one I can’t understand. What is request second opinion by a company that not an existing client?
2.And chapter 5-risk factors. Why the tax heaven and bearer bond/cheques will have higher risk of money laundering? Can you clarify for me? Thank you.February 13, 2020 at 3:36 pm
This is a very useful reference for more details on anything to do with ethics … https://www.accaglobal.com/content/dam/ACCA_Global/Members/Doc/rule/ethics/CEC.pdf
A request for a “second opinion” describes the situation when someone (NOT an existing client) approaches a professional accountant (NOT the existing auditor) and basically says “what is your opinion of such-and-such a situation” – where the situation “hypothetically” described is their own situation and they are at odds with their own auditor.
If there are terms you haven’t come across like “bearer bond” – just browsing for a definition on the internet will provide you with a quicker response. Unlike many bonds which, like shares, are registered, bearer bonds are negotiable instruments – the holder is deemed the owner – because ownership is not registered they could be used to launder money. You should associate the term “tax haven” with a jurisdiction which has low(er) rates of taxes – which should ring “alarm bells” of tax evasion – which is a money laundering offence.
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