ACCA P7 Int UK Slides 2014 15
ACCA P7 (INT & UK)
Chapter 1
REGULATION IN A GLOBAL
ECONOMY
2
3
4
5
Corporate governance
6
Chapter 2
CODE OF ETHICS AND
CONDUCT
7
8
9
10
11
12
Chapter 3
PROFESSIONAL
APPOINTMENTS
13
Acceptance considerations
14
15
16
17
18
Chapter 4
QUALITY CONTROL
19
20
21
Chapter 5
ADVERTISING, PUBLICITY,
OBTAINING PROFESSIONAL
WORK AND FEES
22
23
Chapter 6
TENDERING
24
Reasons for changing auditors
25
Tendering
Advantages of Tendering
• More efficient auditing
• Auditing can be a loss leader 26
Disadvantages of Tendering
• Loss of long-term relationships between clients and auditors
• Market choice reduced by increased concentration
• Lowballing
• Companies may constantly change auditors to reduce costs further
Tender proposal contents
• The basis of the fee.
• Nature, purpose and legal requirements of an audit.
• Client requirements and how the audit firm will meet them. • Audit methodology.
• Outline of firm and personnel.
• Assumptions made, e.g. deadlines, geographical coverage, work performed by client.
• Ability of firm to offer other services.
27
Chapter 7
MONEY LAUNDERING
28
Money laundering
29
Client identification procedures
30
Chapter 8
PROFESSIONAL
RESPONSIBILITIES AND
LIABILITIES
31
ISA 250 Laws and regulations
Director’s Responsibilities
• To ensure the entity complies with relevant laws and regulations.
• To establish effective arrangements for preventing and detecting non-compliance. 32
Auditor’s Responsibilities
• Obtain sufficient appropriate audit evidence about compliance with all relevant laws and regs.
• To consider risk of noncompliance with laws & regulations when seeking mgt reps & forming audit opinion. 33
Negligence
1. Duty of care was owed
2. Duty of care was breached
3. Loss was suffered as a result of the breach
34
Chapter 9
PLANNING, MATERIALITY AND
ASSESSING THE RISK OF
MISSTATEMENT
35
ISA 300 Planning
36
37
Materiality
38
Chapter 10
GROUP AND
Chapter 1
REGULATION IN A GLOBAL
ECONOMY
2
3
4
5
Corporate governance
6
Chapter 2
CODE OF ETHICS AND
CONDUCT
7
8
9
10
11
12
Chapter 3
PROFESSIONAL
APPOINTMENTS
13
Acceptance considerations
14
15
16
17
18
Chapter 4
QUALITY CONTROL
19
20
21
Chapter 5
ADVERTISING, PUBLICITY,
OBTAINING PROFESSIONAL
WORK AND FEES
22
23
Chapter 6
TENDERING
24
Reasons for changing auditors
25
Tendering
Advantages of Tendering
• More efficient auditing
• Auditing can be a loss leader 26
Disadvantages of Tendering
• Loss of long-term relationships between clients and auditors
• Market choice reduced by increased concentration
• Lowballing
• Companies may constantly change auditors to reduce costs further
Tender proposal contents
• The basis of the fee.
• Nature, purpose and legal requirements of an audit.
• Client requirements and how the audit firm will meet them. • Audit methodology.
• Outline of firm and personnel.
• Assumptions made, e.g. deadlines, geographical coverage, work performed by client.
• Ability of firm to offer other services.
27
Chapter 7
MONEY LAUNDERING
28
Money laundering
29
Client identification procedures
30
Chapter 8
PROFESSIONAL
RESPONSIBILITIES AND
LIABILITIES
31
ISA 250 Laws and regulations
Director’s Responsibilities
• To ensure the entity complies with relevant laws and regulations.
• To establish effective arrangements for preventing and detecting non-compliance. 32
Auditor’s Responsibilities
• Obtain sufficient appropriate audit evidence about compliance with all relevant laws and regs.
• To consider risk of noncompliance with laws & regulations when seeking mgt reps & forming audit opinion. 33
Negligence
1. Duty of care was owed
2. Duty of care was breached
3. Loss was suffered as a result of the breach
34
Chapter 9
PLANNING, MATERIALITY AND
ASSESSING THE RISK OF
MISSTATEMENT
35
ISA 300 Planning
36
37
Materiality
38
Chapter 10
GROUP AND