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- May 16, 2020 at 8:40 am
Sir,for answer in the Mar/June 2016 Q1(c) ethical part
Its says that “the taxation service involve acting as an advocate for an audit client and the amt involved are material to the FS on which the firm will express an opinion,the advocacy threat created would be so significant that no safeguard could eliminate…”
1. So my question is if the amt involved is not material, the audit firm can provide this service even the audit client is listed/public interest company with appropriate safeguard?
Thank you.May 16, 2020 at 8:51 am
The Code – available here is fully searchable if you’re looking for details https://www.accaglobal.com/content/dam/ACCA_Global/Members/Doc/rule/2019-Rulebook-effective-1-January-2019).pdf
It is only the code part of the handbook that is relevant to the exam and the contents pages are linked to the body for easy navigation. This is what it says about PIE on page 409:
A firm or a network firm shall not prepare tax calculations of current and
deferred tax liabilities (or assets) for an audit client that is a public interest entity
for the purpose of preparing accounting entries that are MATERIAL to the financial
statements on which the firm will express an opinion.
So if not material – it’s not prohibited – provided that suitable safeguards are available.
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