160141
Description
Mind Map by littlepaz_2001, updated more than 1 year ago
|
Created by littlepaz_2001
almost 11 years ago
|
|
1) International regulatory
environments
- IAASB Clarity Project
- Improving the clarity & overall
understandability.
- Consistent application of its ISAs
- Consistent application of its ISAs
- Improving the clarity & overall
understandability.
- Sarbanes - Oxley Act 2002
- Applies to all companies that are required to file accounts in the USA.
- AIM:- Oversee the auditors of public companies.
- PURPOSE:- Protect the interests of investors.
- POWERS:- Setting auditing, quality control, ethics, independence and other standards.
- Also has the authority to regulate the non audit services that audit firms can offer.
- Crriticised for not being strong enough, over-rigid, compliance industry irrespective of
significance, distracted co's from improving information flows.
- Crriticised for not being strong enough, over-rigid, compliance industry irrespective of
significance, distracted co's from improving information flows.
- Also has the authority to regulate the non audit services that audit firms can offer.
- POWERS:- Setting auditing, quality control, ethics, independence and other standards.
- PURPOSE:- Protect the interests of investors.
- AIM:- Oversee the auditors of public companies.
- Applies to all companies that are required to file accounts in the USA.
- Audit Commitees
- At least 3 independant non-executive directors.
- Roles & Responsibilities:-
- Monitor integrity of the financial statements.
- Review internal financial controls, internal control & risk management
system.
- Monitor & review effectiveness of the internal audit function.
- Make recommendations to the board, appointment, re-appointment, removal of auditors.
- Review & monitor auditor's independence, objectivity & effectiveness of the audit process.
- Review & monitor auditor's independence, objectivity & effectiveness of the audit process.
- Make recommendations to the board, appointment, re-appointment, removal of auditors.
- Monitor & review effectiveness of the internal audit function.
- Review internal financial controls, internal control & risk management
system.
- Advantages:-
- Provides an independent point of reference.
- Increased confidence in financial reports (Credibility & Objectivity)
- Allow ex directors to concentrate on management.
- Impartial body for auditors to consult.
- Impartial body for auditors to consult.
- Allow ex directors to concentrate on management.
- Increased confidence in financial reports (Credibility & Objectivity)
- Provides an independent point of reference.
- Disadvantages
- Difficulty selecting NED's with the necessary competence.
- More formalised less judgement more matters of fact.
- Increased Costs.
- Increased Costs.
- More formalised less judgement more matters of fact.
- Difficulty selecting NED's with the necessary competence.
- Monitor integrity of the financial statements.
- Roles & Responsibilities:-
- At least 3 independant non-executive directors.
- Money Laundering
- Process by which criminals attempt to conceal the true origin and ownership of the
proceeds of their criminal activity, allowing them to maintain control over the proceeds.
- Placement:- of the illegal funds into the financial system.
- Layering:- Large number of transactions, making it very difficult to trace.
- Integration:- 'clean' money to spend.
- Integration:- 'clean' money to spend.
- Layering:- Large number of transactions, making it very difficult to trace.
- Accountants Obligations
- Keep records of clients identity.
- Report suspicions to SOCA.
- Gather KYC information, understand your client well enough to spot unusual business activity.
- Gather KYC information, understand your client well enough to spot unusual business activity.
- Report suspicions to SOCA.
- Keep records of clients identity.
- Offences
- Concealing criminal property
- Arranging
- Failure to report
- Tipping Off
- Concealing criminal property
- Process by which criminals attempt to conceal the true origin and ownership of the
proceeds of their criminal activity, allowing them to maintain control over the proceeds.
Want to create your own Mind Maps for free with GoConqr? Learn more.