160141
Description
Mind Map by littlepaz_2001, updated more than 1 year ago
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Created by littlepaz_2001
over 10 years ago
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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.
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