These following services are considered to be a

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89. These following services are considered to be a normal part of the audit process and do not, under circumstances, threaten independence, except a. Analyzing and accumulating information for regulatory reporting. b. Assisting in the preparation of consolidated financial statements. c. Drafting disclosure items. d. Having custody of an assurance client’s assets. Preparing Accounting Records and Financial Statements – General Provisions 90. If the firm is involved in the preparation of accounting records or financial statements and those financial statements are subsequently the subject matter of an audit engagement of the firm, this will most likely create
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Page 15 of 21 Preparing Accounting Records and Financial Statements – Audit Clients that are not Listed Entities 91. The firm, or a network firm, may provide an audit client that is not a listed entity with accounting and bookkeeping services, including payroll services, of a routine or mechanical nature, provided any self-review threat created is reduced to an acceptable level. Examples of such services least likely include: a. Recording transactions for which the audit client has determined or approved the appropriate account classification. b. Posting coded transactions to the audit client’s general ledger. c. Preparing financial statements based on information in the trial balance. d. Determining and posting journal entries without obtaining the approval of the audit client. 92. The safeguards necessary to reduce the threat, created by providing accounting and bookkeeping services to an audit client that is not a listed entity, to an acceptable level might include the following, except a. Making arrangements so such services are not performed by a member of the assurance team. b. Implementing policies and procedures to prohibit the individual providing such services from making any managerial decisions on behalf of the audit client. c. Requiring the source data for the accounting entries to be originated by the assurance team. d. Obtaining audit client approval for any proposed journal entries or other changes affecting the financial statements. Preparing Accounting Records and Financial Statements – Audit Clients that are Listed Entities
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  • Spring '10
  • Mr.Cula
  • Accounting, Accountant, Certified Public Accountant

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