Audit ACCA Pertemuan 5

Audit partner has been in position for eight years

• Familiarity

• Self-Interest

• Self-Review

Partner's son may hold shared in Maldini Co

• Familiarity

• Self-Interest

• Self-Review

Maldini Co has asked Buffon & Co to carry out internal audit work

• Familiarity

• Self-Interest

• Self-Review

Fee will be 20% of profit after tax

• Familiarity

• Self-Interest

• Self-Review

If the internal and external audit assignments are accepted, what safeguards, if any, are needed in relation to the basis for the fee?

• As long as the total fee received from Maldini Co is less than 15% of the firm's total fee income then no safeguards are needed

• The fees should be based on Maldini Co's profit before tax

• The client should be informed that only the internal audit fee can be based on profit after tax

• No safeguards can be applied and this basis for fee determination should be rejected

Audit Team to be offered a baloon flight

• Advocacy

• Intimidation

• Self-Interest

Tax Fee to be based on a percentage of tax saved

• Advocacy

• Familiarity

• Self-Interest

Firm to represent stark in a dispute with tax authorities

• advocacy

• intimidation

• self-interest

In relation to the audit team being offered a balloon ride:

Which of the following actions should be taken to ensure the firm complies with ACCA's Code of

Ethics and Conduct?

• The gift may be accepted as Stark has taken appropriate measures to reduce the

  value of the gift compared to previous years.

• The value of the gift should be assessed to determine whether it is of material value

  to the financial statements.

• The gift should only be accepted if its value is trivial and inconsequential to the

  recipients.

• Only the audit engagement partner and audit manager should accept the gift.

In relation to the audit engagement partner holding the role for nine years:

Which of the following safeguards should be implemented in order to comply with ACCA's

Code of Ethics and Conduct?

• An independent review partner should be appointed to the audit.

• The audit engagement partner should be removed from the audit team but may

  serve as a quality control reviewer.

• Ali & Co should not audit Stark for a five-year period.

• The audit engagement partner should be removed from the audit team.