Chapter 1

To buy a new thing (cloth, computer, property, shares in a company….etc) you will ask someone's opinion

??WHY

To get confidence i.e. ASSURANCE

Definitions

Assurance: statement made to give confidence

Audit: official examination of accounts to see that they are correct and organized

-:There are two types of assurance engagements

1. Reasonable assurance
2. Limited assurance

Assurance engagements

Reasonable Limited
Statutory audits Review engagements
Free from material misstatements
True & fair

-:All Assurance Engagements require

a. User
b. Subject matter
c. Practitioner (provides professional services with competence, objectivity, independence and to
expected standards)
d. Responsible party (the person supplying goods/ services)
e. Subject matter information (agent's details, FS..)
f. Criteria (your expectation against which you'll decide your purchase is worthwhile)

Engagement process involves:-

a. Agree terms of engagement (engagement letter)

b. Decide methodology for evidence gathering, evaluation measurement to support a conclusion
c. Type of report

Reasonable Assurance:-

a. Gathers sufficient appropriate evidence

b. Concludes subject matter conforms in all material respects with identified suitable criteria
(information given is reliable)
c. His opinion- positive assurance

Reasonable Assurance:-
 a. Gathers sufficient appropriate evidence to be satisfied that subject matter is plausible in the
circumstances
b. Gives his report- negative assurance

Assurance report/ opinion is not an absolute opinion, why?

1. Because of lack of precision often associated with subject matter (FS subject to estimation and
judgment)
2. Nature, timing and extent of procedures
3. Evidence is persuasive rather than conclusive
4. Evidence is gathered on test basis

Reporting the outcome of assurance engagement

Practitioner > reports > user

Two types of reports a) positive assurance b) negative assurance

- Audit of Co's (annual, statutory, FS these are collectively called General Purpose FS by IASB) are the
most common assurance engagement
- Reports are directed to different STAKEHOLDERS who have different reporting needs, these are
o Mgt + those in charge of governance: how effective the Co's systems are as a mechanism for
producing FS, showing fair & true view and safeguarding of CO's assets
o Lenders (Banks, Financial Institutions): often on a limited assurance basis require reports on
financial viability of a Co
o Management: employment and environmental practices to satisfy demands of employees+
local community groups

We have two issues on reporting area:-

1. There is a legal requirement for accounts to be produced by Mgt on a regular basis to account to
shareholders for their STEWARDSHIP of the business
2. The recognition of the need for these accounts to be checked in some way by someone
INDEPENDENT of the managers (the AUDITOR)

STEWARDSHIP:-the responsibility to take good care of resources, and

STEWARD: person entrusted with mgt of another person's property, he is accountable for the way he carries
out his role

FIDUCIARY RELATIONSHIP: the relationship where one person has a duty of care towards someone else
1. it is a relationship of good faith between shareholders and directors of CO
2. Separation of ownership (shareholders) and control (directors)
3. Therefore, directors must take decisions in the interests of the shareholders rather than their
own selfish personal interests

ACCOUNTABILITY: people in positions of power can be held to account for their actions, therefore
1. compelled to explain their decisions
2. criticized/ punished if they have abused their position
3. accountable for using Co's assets efficiently and effectively
AGENCY RELATIONSHIP:
1. Occur when one party (principal) employs another party (agent) to perform a task on their behalf.
2. It is a relationship between various stakeholders in a Co are described in term of agency theory
Directors are agent for shareholder
Employees " " directors
Auditors " " shareholders
3. Co's mgt account for their stewardship of Co at regular intervals by producing FS
4. What if FS contains errors, or even worse, are fraudulent?? There was a need for independent audit
5. A need for 100% verification of FS and that they are correct, there is a problem
a. Too expensive due to amount of work
b. May prove to duly disruptive of Co's operations
Therefore auditors are established as forming an independent opinion about:-
a. Truth and fairness of FS
b. FS comply with legal and regulatory requirements
And, this is a typical assurance engagement (and NOT an absolute assurance) that 1. gives
confidence to SH that FS are true & fair view
2. Reduce risk of misstatement

EXTERNAL AUDIT
It is a requirement by Law in most developed countries that its objective is to enable auditors to
express an opinion on whether FS
1. presented fairly in all material respects (true & fair view)
2. prepared in accordance with an applicable financial reporting framework (which vary from
country to another)

GENERAL PRINCIPLES
1. Compliance with applicable ethical principles (IFAC code of ethics for professional accountants) and
ethical pronouncements of auditors' professional body (e.g. ACCA rules of professional conduct)
2. Compliance with applicable auditing standards (IAASB/ ISA)
3. Planning and performing the audit with the attitude of professional scepticism recognizes that FS
may be materially misstated

*NB 40 questions, pass 65% representing 26 correct answers out of 40 questions.

** Computer based exams
*** MCQs, 3 minutes / question
 Chapter 2
The rules & who sets them

1. Audit Regulation

Framework

Ethics

ISAs People Law

The Audit itself

2. IFAC/ ISAs/ Law

IFAC : is the global organization for Accountancy Profession, its overall mission is to:-

1)Serve the public interest

2)Strengthen the worldwide accountancy profession
3)Contribute to development of strong international economies by establishing and promoting
adherence to high-quality professional standards
4)Publishes code of ethics

International Auditing & Assurance Standards Board:-

1. A subsidiary of IFAC
2. Set ISAs (currently 30 standards)
3. Issue Int . Standards on Quality Control ISQC1 (these are quality control principles for all assurance
engagements conducted under its standards including audits )
4. Issue standards for other types of assurance engagements in addition to audits

 Can we enforce IFAC standards & rules of professional conduct on individual countries??

Yes/ No? Why?

NO because it is a grouping of accountancy bodies therefore has no legal standing on individual countries.

 Therefore there is a need for countries to have arrangements in place to:-

o regulate the profession (self Regulation by Audit accountancy profession OR government/
independent body set up by government), and
o implement audit standards (own standards OR ISAs adopted & implemented after
modification to suit Co's needs)

Law: Why there is a legal requirement to audit Co's accounts?

1) To protect business owners interest from unscrupulous managers
 2) To protect business world (public at large) from owners taking advantage of their limited liability
status

3. Audit Exemptions
1. Owners are the ones managing the business therefore preparing the A/Cs
2. Professional advise mainly concern accounting/ tax services rather than audit services (may rise
conflict of interest under the ethics rules)
3. Misstatement of accounts is immaterial to the wider economy
4. Audit fee may be greater than the benefit the audit may bring (taking into account the above)
4. Auditor's duties
 Form an opinion on whether FS give a true & fair view and prepared in accordance with applicable
reporting framework
 Issue an Audit Report on the above

To do so auditors need the following:-

1. Receive proper returns from branches not visited

2. Ensure that CO's FS agree with underlying accounting records
3. Proper accounting records are kept
4. All Info & explanations obtained
5. Info with FS agree with them (Consistency)
6. Info required by law and not in FS included in auditor's report (called exception reporting)
 The first 5 points will not be included in the audit report unless there is a problem

5. Who can act as an Auditor and who can't?

 A person /a firm acts as an auditor must be:-
1. a member of a RSB/ firm controlled by members of RSB, and
2. allowed by the rules of RSB to act as an auditor OR
3. directly authorized by the state

 Excluded those who:-

1. are involved with managing the Co and
2. have a business/ connected with Co's mgt

6. Appointment & Removal of External Auditors

 Appointment
1. appointed by SH (members of CO)
2. directors CAN appoint first auditor to fill casual vacancy BUT needs SH approval at next AGM
3. appointed for one year after the elective resolution is made (end of AGM to end of next AGM)
4. if there is no AGM automatic reappointment unless SH objects

 Removal When :-
1. auditors has sufficiently secure tenure of office (to maintain independence of mgt)
2. there are doubts about their continuing abilities to carry out their duties effectively
Then, by majority at AGM of Co with a specified notice period

 Resignation When :-
1. auditors and Mgt find it difficult to work together
2. auditors submit statement to Co's members of the circumstances surrounding their resignation
7. Auditors' rights
 On Appointment
1. have access to Co's records
2. receive explanation on info necessary to conduct the audit
3. receive/ attend AGM
4. to be heard at AGM
 On Resignation/ Removal:-
1. request an Extraordinary General Meeting EGM t explain circumstances of resignation
2. require CO to circulate the notice of circumstances
 Chapter 3

Corporate Governance & Internal Audit

Corporate Governance (CG)

 The means by which Co is operated and controlled

 Co is run in the best interest of SH and wider community in general
 Why do we need CG?
1. CG came to prominence in 1980s in UK following the large Cos' collapses (eg Maxwell & BCCI)
2. Poor standards of CG led to insufficient controls to prevent wrongdoings in US in 1990s (eg
collapses of Enron & World Com)
3. Therefore auditors worked to tighten up standards on CG
4. Important to public Co because large amounts of money invested by small SH, pension schemes
& other financial institutions
 The key to CG is to:-
1. ensure that talented individuals are rewarded at appropriate levels for their effort & skill, and
2. ensure that they act in the best interest of Co & its SH
 In UK :- listed Cos must include CG statement in annual report, Auditors review not to audit this
statement
 In USA:- Auditors must attest if Co complied with CG requirement, therefore give an opinion on
Internal Control System and its effectiveness amongst other things (Sarbanes Oxley)
 Who is responsible for CG?
1. Managers and appointed individuals to ensure it is well managed
2. Auditors are not but interested in Mgt attitude & approach, why?
a) If Co has good standards of CG and is well managed then the risk of errors in FS is reduced
b) in case of inconsistency there is an impact on audit report:-
 Qualified : highlights an error in FS & directors refuse to amend the error
 Auditor add an emphasis of matter paragraph to their report: highlights an error/ misleading
in CG statement

OECD and principles of CG

 OECD issued 6 principles in 1999 and these were revised on 2004

1. Ensuring the basis for an effective CG framework :-
a) CG should promote transparent & efficient markets
b) the later is consistent with the rule of law
articulate clearly the division of responsibilities among different supervisory, regulatory &
enforcement authorities
2. The rights of SH & key ownership functions:- CG protect & facilitate the exercise of SHs' rights
3. The equitable treatment of SH:- all SH should have opportunity to obtain effective redress for
violation of their rights
4. The role of stakeholders in CG:- CG should recognize rights of stakeholders established by law or
through mutual agreements
5. Disclosure & transparency:- CG ensure timely & accurate disclosure is made on all material
matters regarding the corporation, including financial situation, performance, ownership &
governance of Co
6. Responsibilities of the board:- introduction of audit committees and no-executive directors on
the board is the usual way for monitoring mgt.
External Audit & CG

 Sub-principles VC & VD on Disclosure & responsibilities suggest that external audit conducted to
professional standards helps to maintain standards of CG

How COs are run?

 There are two basic models of board structures

Two tier board Unitary board

Comprises of:- Comprises of:-

1. Executive board of the day to day 1. Single board of directors
decisions in the running of Co 2. Distinction between executive (mgt) &
2. Supervisory board:- non-executives directors
a. oversees the executive board 3. Sub-committees (audit, remuneration,
b. made up of representatives of employees, nomination & risk committees) to
investors & others oversee mgt actions
c. approves major decisions therefore check
on the actions of executive board

Disadvantages:-
1. Cumbersome and difficult to administer
2. Supervisory board may not have access to
info on sufficiently & timely basis
3. investors and some other stakeholders
reluctant to discuss key issues in the
presence of employees' representatives

Non-executive directors

1. Employed on a part-time basis

2. Don't take part in the routine executive mgt of CO
3. Role of participation at board meetings
4. Provide experience & business contacts which strengthen the board
5. Membership of sub-committees (who should be independent & knowledgeable non-executive
directors)

Advantage > oversight conscience & bring external expertise to CO

Disadvantage > accused to be staffed by an "old boy" network, may fail to report significant problems,
approve unjustified pay rises & may not be sufficiently well- informed or technically competent

CG in action

There are challenges for COs to deal with demanding CG environment eg:-

1. A need for ongoing mechanisms to manage risks

2. There must be an evidence of an appropriate control culture and ongoing review
3. Increased importance of Audit Committees and therefore greater info to be made available to the
board and to the audit committee

 Aspects for CG that are crucial if public COs' are to be well run
1. Segregation between the roles of chairman & CEO

Chairman Chief Executive Officer

1. Non executive 1. Executive Director

2. Heads up non-executive directors 2. Heads up executive directors

3. Ensures full info & discussion at board 3. Ensures effective operational functioning of
meetings the CO

4. Ensure satisfactory channels of
communication with external auditors
4. Shouldn't act as chairman & CEO due to:-
a) conflict of interests,
b) a lot of power vested in one hand
c) be able to sway decisions made by the
board
d) decisions taken in the best interests of
directors not SHs

5. Runs the board of directors

6. Ensures the effective operation of sub-

committees of the board

2. Audit Committees
a) comprises of non-executive directors & at least one member have recent relevant financial
experience
b) its objectives include increasing credibility of reported FS and external auditors' independency
c) Its functions may include
1. Monitoring the integrity of FS
2. Monitoring & reviewing CO's internal financial controls & IA function
3. Recommend appointment & removal of external auditors (including audit fees)
4. Monitoring & reviewing external auditors independence, objectivity and
developing/implementing policy on other services provided
5. Reviewing arrangements for confidential reporting by employees
d) Advantages:-
1. Independent reporting to internal audit department not like managers (may amend/ hide IA
reports)
2. IA recommendations are auctioned
3. Enhance confidence on FS (reviewed by independent committee) and appropriate system of
internal control (managers fulfill obligations of CG)
4. Better communication between external auditors, SH& Mgt
5. Clear reporting structure and appointment mechanism from board to external auditors
e) Disadvantages:-
1. Threat to mgt
2. Additional cost (time involved)
3. Non-executive over burdened with detail, and
4. Two tier board of directors
f) Audit Committee & IA: Audit committee may establish IA function to enable them carry their
responsibilities effectively & efficiently, to do so they have to:-
 1. Ensure that IA has access to chairman & Audit committee (IA directly reports to audit
committee)
2. Review IA work plan and Mgt responses to IA findings & recommendations
3. Receive IA periodic reports and meet with head of IA once a year without the presence of mgt
4. Monitor & assess effectiveness of IA in the overall context of CO's risk mgt

3. Other committees
a)Nomination : recommends suitable candidates for senior mgt & CEO positions
b) Remuneration: determine how much the above will be paid

4. Risk mgt
a) COs should identify potential/ business risks in terms of its likelihood & its potential impact
(maintain risk register & risk map)
b) Decide appropriate measures to reduce these risks (e.g. insurance against risk of fire and
training & motivating staff to reduce risk of losing key personnel..)
c) Mgt should Implement an efficient Internal Control System (ICS) to minimize risks (e.g.
reduce risk of FS to be misstated or theft of CO's assets)

5. Internal Audit & CG

 Why needed? In big COs to provide assurance to mgt that:-
a) ICSs are working effectively & efficiently;
b) laid down procedures are been followed;
c) FS & other info being produces are sound & reliable, and
d) business is complying with PECD principles
 To report on the above we need IAs who are:-
a) Competent & well trained;
b) well organized to apply well developed work practices;
c) sufficiently resourced in terms of budgets & staffing, and
d) independent & objective.
 The last point entails the followings :-
1. head of IA is a senior staff;
2. IA reports reviewed by audit committee (or independent body from mgt), and
3. whistle blowing arrangements whereas IA reports directly to the CO's chairman or chief of audit
committee
 Limitations of IA function
1. Reporting System: Chief IA reports to Finance Director (FD) therefore threatens IA independence
(fear of confrontation with FD)
IA reports directly to an Audit Committee
2.Scope of work: decided by FD in discussion with chief IA (FD may influence IA and areas to be
audited)
Chief IA to Decide scope of work (perhaps with the assistance of audit committee
3.Audit work: may audit their own work (therefore not able to identify mistakes)
IA shouldn't establish ICSs, if happens two separate s/m to establish & review ICSs
4. Lengths of service of IA staff (long periods of employment lead to familiarity with ICSs therefore
limits their effectiveness & objectivity in identifying errors
Rotation of IA s/ms & chief IA to review
5. Appointment chief IA (CEO may appoint someone who won't criticize his work)

Chief IA to be appointed by Audit Committee or by the whole board

 6. Variation of standards (not uniform across the profession compared to external auditors-ISAs)
7. Expectation gap & understanding of IA function (checking employees on behalf of bosses)

 Outsourcing IA may represent better value than an in-house provision

Advantages:-

1. cost saving is a term of recruiting permanent staff

2. greater focus on cost of efficiency of IA formation.

3. (Wide experience/experienced IA ) high profile IA office

a. Greater expertise

b. More independent

c. Access to latest technology

d. Specialist skills may be more readily available

4. Reduced risk of staff turnover

5. Reduced mgt time in administering an in-house department

Disadvantages:-
1. Conflict of interest if external auditors provides services
2. Threat on independence (mgt may threaten not to renew contract
3. Lack of knowledge understanding of org's objective, culture
4. Tender awarded based on lowest cost
5. Flexibility & availability may not be as high as with an in-house function
6. Lack of control over quality of service provided
7. Risk of blurring of rules between external & internal audit losing credibility of both. How
can we minimize this risk?

6. Internal Audit assignments

This may include:-
a) VFM economy, efficiency & effectiveness (3Es) and challenge, compare, consult & compete (4Cs)
b) audit of IT systems (VFM, contracts for installation were effective, things done effectively)
c) audit of projects (where objectives achieved, implemented effectively, lessons learnt from
mistakes)
d) financial audit (traditional audit of FS to prevent fraud and detect errors, comparison between
actual vs budget and variations from the norm)
7. Operational & Internal Audit assignments
1. review business operations
2. effectiveness of controls
3. identify areas to improve operational 3Es
 Four main areas are:-
a) marketing (aspects of promotion and branding org) ensure not to damage SH value, org reputation
or misuse financial & marketing resources (3Es)
b) treasury (mgt of cash flow & investment within org to maximize the use of available finances) IA to
check internal procedures in place to reduce risk of forex, interest rate fluctuations and inflation
 c) HR: in addition to payroll administration there are other areas of risk that needs mgt attention
therefore IA need to ensure that CO's policies and procedures are applied effectively (e.g. leavers
don't return CO's property, reasons for leaving, incorrect payment to leavers)
d) Procurement (achieve VFM) ensure paying right people, right amount and right goods & services
received
8. Internal Audit Reports
 IA auditors reports should be:-
a. Focused on organization's needs (auditor is aware of reporting objectives, mgt style … etc)
b. Short & sweet (Easy to read & understand)
c. With clear recommendations (some way to measure successful implementation)
d. Prioritisation (important content is readily accessible not as an annex)
e. Avoid surprises (discuss with mgt as points arises therefore avoid details in the report & ensure
mgt action is promptly taken)
f. Fairness (mgt welcome balances & constructive reporting)
 Types of reports
a) Formal : Traditional outcome
b) Shorter memorandum reports: applicable for smaller, urgent and with less depth is required
c) Oral Presentations: usually delivered as well as main report to highlight key findings

Ehsanh_2000@yahoo.com
 Chapter 4
Responsibilities

1. Control structure within organizations

a. Those charged with governance (Board of Directors)

 Supervise mgt to ensure CO is operated & controlled in the best interests of SH, therefore ensure that
all mechanisms of CG are in place.

b. Executive Directors/ Managers

 Run the CO/ operate the business, therefore prepare FS to reflect true & fair view of CO's results

 For managers to carry out their duties they have to:-

1. Select suitable a/c policies;
2. Make reasonable and prudent estimates & judgments and
3. Design & implement ICSs to prevent fraud and error

2. External auditors

 Are required to form an independent opinion on whether (or not) FS reflect a true and fair view of
CO's results at the period then ended. To be able to do so they have to:-
1. Plan their work
2. Gather sufficient appropriate audit evidence
 Therefore, they are not responsible for what managers do but interested in:-
a) Quality of accounting system as a basis for producing F/S
b) Effectiveness of ICSs
c) Standards of CG including effectiveness of IA function
But why they are interested on the above?
Because the effectiveness of the above will reduce risk of misstated FS

3. Communicating with those charged with governance (ISA 260)

 Pre-Audit : the following issues are discussed and communicated

1. Practical matters concerning forthcoming audit
2. Audit fees
3. Nature and scope of audit work
4. Engagement letter are Up to date
 During the Audit : any situation occurs that needs to be immediately addressed
 After the audit: takes the form of mgt letter including:-
1. Major findings
2. Observations on ICSs
3. Audit recommendations
4. Final draft of letter of representation
5. Expected modifications to audit report

4. Internal auditors (ISA 610)

 Should be independent, objective and compliant with ethics and professional rules. Their
responsibilities include:-
1. Monitoring ICSs
2. Examination of financial and reporting information
 3. Review economy, efficiency and effectiveness of operations (including non-financial controls)
4. Review compliance with laws, regulations and external requirements
5. Review compliance with mgt policies, directives and other internal requirements
6. Special investigation in to particular areas (e.g. suspected fraud/ intentional damage/ theft…)

5. Systems & controls

 It is the responsibility of (and why):-

1. SH
2. external auditors
3. internal auditors
4. directors
Directors have to establish systems and controls to enable them:-
1. safeguard CO's assets
2. produce FS that give a true & fair view of the business
3. prevent and detect fraud
 Why external auditors are interested in ICSs?
1. strong ICSs means that risk of misstatement in FS will be reduced
2. if they decide to depend on 1 then auditors will reduce the extent of their procedures and will need
to sample check/ test those controls and document their findings
3. weaknesses in systems and controls will be reported to those charged with governance in the
external auditors mgt letter
 Internal auditors are not responsible but may be assigned to review effectiveness of ICS

6. Fraud and error (ISA 240)

 Fraud: an intentional act involving the use of deception to obtain an unjust or illegal advantage
 Error: an unintentional mistake and could include accidental misapplication of accounting policies,
oversights or misinterpretation of the facts
 External auditors:
1. Responsible for detecting any material fraud that may have occurred as this will lead to material
misstatement (not immaterial fraud or errors, the if identified to be reported to those charged with
governance)
2. The risks of fraud are higher than errors, why?
 Because of the possibility of concealment & collusion between staff
3. To detect fraud auditors must maintain an attitude of professional scepticism when carrying their
duties/ work
4. It is possible that FS are materially misstated therefore auditor has to report this if they are unable to
conclude whether FS are materially misstated to the following(s):-
a) Audit Committee
b) Senior management
c) Shareholders if managers committed fraud and there is no audit committee
 Directors :
1. They are responsible for preventing & detecting fraud and error therefore;
2. Assess risks and CG procedures to prevent their occurrence
3. Audit committee review these procedures to ensure they are working effectively (with IAs help)
 Internal Auditors may be assigned to :
1. Assess risk of fraud (the likelihood of their occurrence)
2. If discovered assess consequences
3. Make recommendations to prevent occurrence in future
 Chapter 5
Ethics & Acceptance of appointment

1. The IFAC & ACCA

1. IFAC & ACCA have issued a code of ethics, that are almost identical

2. Both follow a conceptual framework which identifies:-

a. Fundamental Principles

b. Potential threats to ethical behavior

c. Possible safeguards to counter the threats

3. The conceptual framework relies on principles rather than rules based approach i.e. the actual application
depend on individual circumstances of specific situation

2. The fundamental principles (please refer to text book page 117 & 118 on the formal definitions on the
below principles)

1) Objectivity
2) Professional behavior
3) Professional competence & due care
4) Integrity
5) Confidentiality

3. Threats and Safeguards (please refer to text book page 117 & 118 on the formal definitions on the below
principles)

Standard Rule: Practitioner needs to "behave and be seen to behave" in an ethical, professional manner.

a) Identifying the threats

 Firms need to identify threats, evaluate related risk, evaluate safeguards in place and take corrective
action if necessary, these may include:-
1) Self interest threat (e.g. dependence on one client)
2) Self review threat (external auditor prepares FS and review them)
3) Advocacy threat (auditor be biased in favor of client when asked to represent them in court)
4) Familiarity threat (auditor too trusting the client because of a close relationship with them)
5) Intimidation threat (client harass auditor into giving an unqualified opinion when a qualified opinion is
appropriate)
 There should be procedures in place to identify these risks on acceptance, planning, during and
completion stages of the audit)
 Procedures may take the form of:-
1. checklists procedures to be filled in when new appointments accepted covering issues like proof of
client's identity & consideration of relationship with the firm or its staff
2. "Fit and proper" or "independence" forms to be completed by all staff on a regular basis disclosing
financial interests & other factors
3. Consideration of independence issues when files are reviewed as part of the firm's quality control
process
4. Appointment of a senior partner with responsibility for ethical issues.
b) Possible safeguards

1. Created by the profession and this include:-

 Education, training and experience required for entry into the profession
 Professional development requirements
 CG regulations (OECD 6 principles)
 Professional standards
 Monitoring and external review of work & reports
 Right to discipline through fines, suspension of membership or even withdrawal

2. In the work environment

 Oversight structures
 Ethics and conduct programs
 Good recruitment procedures
 Strong internal controls
 Displinary procedures
 Strong ethical leadership
 Policies and procedures to promote quality control
 Culture and strong ethics in the organization

3. Created by individuals

 Complying with professional development requirements

 Keeping records for contentious issues
 Keeping a broader perspective
 Using a mentor
 Keeping in contact with professional bodies

4. Specific threats to objectivity

please refer to text book pages 122-130