Ethics

Regulatory Framework for Audit and Assurance

govern auditing profession
Importance of Regulation

Improve Work Quality Regulation provide guidance for auditors such as

IAS/ISA to carry out their auditing mordasddaae effectively.
Protect Public Interest Regulation enhanced auditors professional
attitude and standard of works to asdasd profession

Public Oversight Board

Public oversight board is a group of independent parties to monitor auditors works
Fair Repodadadasrt Auditorsdasdasd asdndeqweqweqwpendent
Public User Reliable and relevant financial info can protect public interest
and enhance public confidence eqweqweqw could maintain the dignity of
registered public accasdasdasdounting firms

Audit committee - 100% independent NdsdsEDs and at least one have

financial experience
Internal Control Effectiveness - Assist in qwedeveloping a sound internal
control to prevendasdasdt fraud and effort and external audit fees.
Pressure Managemdsdsdsdent - Fdasdasdasocus on work done by
management to
comp to raise additional funds for growth.

Money Laundering obtained from bribery, corruption, tax evasion and

fraud.adas
dadasdasda

Processqweqweqweqw
Placement is putting money into finaadasdasdncial instruments such as bank
deposits, unit trusts and life policies.

Accountant commit dosdsffences

Involve - Handling d - Suspicion of ML activities to relevant authority

(Onerous legal reqsdsdqweqweqweuirements)
Failure to comply - With specific regulatory requirements in relation to ML
Tipping Off - Making disclosure whicsdqweqwh likely to prejudice future
investigation of ML activities

P7 Notes

Ethical dilemma for tipping off

When you Suspect money laundering activity that might be material causing the FS
to be wrong
Inform management about the suspicion might be tipping them off
Not inform management about the suspicion will give wrong audit report as
FS is wrong
If issue modified report, read it and might be tipping them off
If audit delay, might create suspicion and tipping them off
Resign and adasdasdasdadqits considering an offence for not to do so.
Allow staffs to discuss the suspicion with the audit manager to ensure its
reasonable befoweqweqwere report to MLRO
Train Stafsdasfs
Firm provide training for staffs so that they undasdaserstand the relevant
regulations of ML, know how to identify and response with the ML activities.
asdasdas
Record Keeping
Maintain records of client identification and asdadasdany transactions undertaken
with the clients. The dsdsd must be kept for at ledasdasast 5 years after the
completion of transactions.
Extra care needs to be taken when handling clients money to prevent transaction
involving in money laundering.

sdsds
Policies and procedures to response ML
Client Identification Procedures
Before accepted new client, Firm should carry out the following procedures to
understand the naturesdsd of biz:
of passport, driving and license to identify of all directors
Obtaining the Theqweqweqw s?)
The source of the clients funds (is there any other investors, does comp
raised any debt finance?)
Implement Effective IsdsdC and RM System
Firm should establish the systems that effectively identify and manage the risks
exposed regarding to sds