PART B- PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE

1. PROFESSIONAL APPOINTMENT
 Client Acceptance
 Engagement Acceptance
Appropriate safeguards may include:
A. Appropriate understanding of the nature of client’s business
B. Knowledge of relevant industries
C. Obtaining requirements with relevant regulatory requirements
D. Assigning sufficient staff
E. Using experts where necessary

 Changes in a Professional Appointment

Appropriate safeguards may include:
A. Discussing the client’s affair
B. Asking the existing accountant
C. Replying to requests to submit tender

2. CONFLICTS OF INTEREST
A professional accountant in public practice should take reasonable steps to identify
circumstances that could pose a conflict of interest.
 Notifying the client of the firm’s business interest
 Notifying all known relevant parties
 Notifying the client

Additional safeguards:
A. Separate engagement teams
B. Procedures to prevent access to information
C. Clear guidelines
D. Use of confidentiality
E. Review of the application of safeguards

3. SECOND OPINIONS
A professional accountant in public practice who is asked to provide a second opinion on an
entity that is not an existing client may give rise to threats to compliance with the
fundamental principles.

Appropriate safeguards:
A. Client’s permission to contact the existing accountant
B. Limitations surrounding any opinion in communications with the client.

4. FEES AND OTHER TYPES OF REMUNERATION

 Professional Fees
Appropriate safeguards may include:
A. Client’s awareness as to terms of the engagement
B. Appropriate time and qualified staff
 Contingent Fees

Appropriate safeguards may include:

A. Advance written agreement
B. Disclosure to intended users
C. Quality control
D. Review of an objective third party of the work performed by professional accountant

 Referral Fee or Commission

Appropriate safeguards may include:
A. Disclosing to client any arrangements to pay a referral fee
B. Disclosing to client any arrangements to receive a referral fee

5. MARKETING PROFESSIONAL SERVICES

Generally, any form of advertisements is allowed.

6. GIFTS AND HOSPITALITY

7. CUSTODY OF CLIENT ASSETS

Appropriate safeguards may include:
A. Separate assets
B. Purpose

8. OBJECTIVITY- ALL SERVICES

9. INDEPPENDENCE
Independence in auditing means taking an unbiased viewpoint in the performance of the
examination and in the preparation of the report.

A. Engagement Period
B. Independence requirement
C. Independence Interpretations and Rulings
 Financial Interest
 Loans and guarantees
 Close Business Relationships
 Family and personal relationships
 Past employment with an assurance client
 Serving as an officer or director on the Board of Assurance Clients
 Long association with assurance clients
 Provision of accounting and bookkeeping services to assurance clients
 Provision of taxation services to assurance clients
 Provision of legal services to assurance clients
 Recruiting Senior Management
 Fees- overdue
 Contingent Fees
 Gifts and Hospitality
 Actual or Threatened Litigation