Part A audit framework and regulation (2)

professional ethical & quality control：fendamental principles、threasts & safeguards、accepting audit appointment。

Part A audit framework and regulation

• professional ethical & quality control
  • fendamental principles
    • integrity
    • objectivity
      • confilct of interests : between the interests of different client
        • safeguards
          • both client and its competitor should be notified and consent shoul be obtained
          • seek additional independent advice form customer
          • separate engegement teams
          • prevent access to information
          • clear guidelines // security and confidentiality
          • ues of confidentiality agreements
          • reviewed by an appropriate reviewer
          • regular monitoring of the application of the above safeguards
    • confidentiality
      • obligatory disclosure
        • money laundering,terrorism ,drug trafficking
      • voluntary disclosure
        • public interest
        • protect a menber's interest
        • authorized by statute / laws
        • non-governmental bodies
    • professional cpmpetence and due care : to act diligently and in accordance with apllicable technical and professional standards .
    • professional behavior :1)complay with law ;2)gain respect
  • threasts & safeguards
    • ethical threast
      • self-interest threat
      • self-review threast
      • advocacy threast
      • familiarity threast
      • intimidation threast
    • threats arising from P22
      • financial matterrs
        • financial interest :self-interest threat
        • loans and guarantees : self-interest
        • fees :self-interest /intimidation threat
        • gifts and hospitality : self-interest threat ,familiarity or intimitation threat
      • employment and other relationships
        • business relationship :self-interest or intimidation tnreat
        • personal relationship : self -interest ,familiarity or intimi dation threat
        • employment :self-interest ,familiarity or intimidation threat
        • long association : self-interest or familiarity threat
      • provision of non-audit service
        • preparing accounting records and financial statement :self-review threat
        • tax service : self-review or advocacy threat
        • internal audit service :self-review threat
        • recruiting services：self-interest，familiarity or intimidationt hreat
    • general safeguards
      • ues different team
      • separate teams with separate reporting line
      • additional review
      • KAP ratation,remove the individual
      • decline
  • accepting audit appointment
    • acceptance procedures
      • profeesionally qualification
      • exsiting resources adequate
      • communicate with present auditors
    • client screening
    • precondition for an audit P30
      • financial reporting framework
      • written representation : prepare FS ,implement internal control ,unrestricted access to records and documents and staff
      • the engagement letter
        • must include
          • objective ,scope
          • auditor's responsibilities
          • management responsibilities
          • applicable financial reporting framework
          • expected form and content of any report
        • may include
      • quality control
        • quality control on an indiviual audit : profsional standards ,legal and regulatory and requirements // issued ia appropriate
        • engagemnet performance P33
          • direction
          • supervision
          • review
          • key terms of review : peer review ,pre-issuance review ,pos-issuance review .