audit risk, sue for negligence, unappropriate conduct

intimedation: 恐吓  base on contract renew or to grant an engagement

mitigation  缓解，减弱

mitigate the risk

identify the r=ethic issue and analysis and discuss, why it is a problem and how it will impact our professional conduct

principle and objectivity

identified the threat

assess the siginificant of the risk

safeguard to practice and conduct code of ethic of conduct

ethic behaviour

explaining how it could affect negligence practice

ethic issues: objective, competence, integrity, profesional behaviour

intimidated by the clients, risk to threat objective, lower cost bring the not enoughresources be organized to practice, competence and tech

responsibilities and liability:

three key areas here:

fraud and error

laws and regulation

negligence for practice

1. fraud and error/laws and regulations:

-responsibilities of auditor and management

-how to assess the risk at the planning stage

-procedures to address the risk during the audit

-who to report to

2. Negligence-can be sued

-the three tests for negligence

•  did we own a duty of care
• was that duty breached:
• was a loss suffered?

great structure to answer a negligence question

-how to spot a lack of audit quality

-how to reduce the risk/impact of negligence claim

things to look out for regarding to audit quality:

• not comply with an ISAs
• lack of direction, supervision and review
• evidence of rushing, not gathering enough evidence
• to few staff
• work assigned to inappropriate staff
• unauthourized change of the audit plan
• wrong type of evidence be gathered

common pitfalls

1. complains of ISA and laws and regulations

2. mis reading the requirement

3. not explain why something impact audit quality'

4. not conclusion a negligence question

tendering, advertise and acceptance of engagement:

• lots of consideration at the acceptance stage- not only ethics
• rules surrounding the professionalism of advertisement and use of ACCA title and name
• the process of tendering and what to put in a tender

skills to solve these kind of problems:

-everything need to considering during acceptance stage, why

the various rules regarding advertice and use of ACCA

spotting subtle unprofessional language /suggestion in 

being able o tell

common pitfalls:

thingking that an acceptance question is just about ethics

not explain why we through acceptance procedures

not identifying the point in time(confusing pre-acceptance with planing)

talking about engagement letter in the pre-acceptance phase

not appreciating pitfalls of tender process

too little to discuss about the ternder document