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Hello Mr Smith
Q 206 Huling in Kaplan 2020-21
Caving & Co also provides taxation services for Hurling Co in the form of tax return
preparation along with some tax planning advice.First ,
what is the tax planning advice and taxation services?secondly
The threat here is self interest and could be intimidation threat due to the amount the fees out of this services work.but for response could we say that this service could be done by an independent staff not involved in the the audit of the client,
Thanks,
hello Sir,
The tax services and tax planning is it in itself be an advocacy threat ?
thanks,
Tax advisory and tax planning services comprise a broad range of services, such as advising the audit client how to structure its affairs in a tax efficient manner or advising on the application of a tax law or regulation.
For most non-assurance services to an audit client, “Using professionals who are not audit team members to perform the service might address … threats”
But be aware that for PIEs there may be prohibitions because that is not sufficient to reduce the threat to independence that may be perceived. For example:
“A firm shall not provide tax advisory and tax planning services to an audit client that is a public interest entity if the provision of such services might create a self-review threat.”
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