Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Other current issues

Halvorsen Audit proposes to provide Meridiane plc, a PIE audit client, with a non-audit service that the Code treats as a permissible one. Under the IESBA Code, which step is required before the firm provides that service?

Before providing even a permissible non-audit service to a PIE audit client, the firm should communicate with those charged with governance about the service and threats, and obtain their concurrence. Management approval alone or later notice to a regulator is not enough.

  1. AObtain the client's management's approval only
  2. BCommunicate with those charged with governance about the proposed service and the related threats, and obtain their concurrence before accepting itCorrect
  3. CInform the regulator after the engagement is completed
  4. DNo step is needed because permissible services need no communication

Explanation

For PIE audit clients, the Code requires the firm to communicate with those charged with governance regarding non-assurance services, including the threats identified and how they are addressed, and to obtain their concurrence before acceptance. Management approval alone does not provide independent oversight. Post-event notification to regulators is not the Code requirement. Permissibility does not remove the need to evaluate threats.

Did you get it right without looking?

One question tells you little. A timed set on Other current issues shows your real accuracy, how long you take and where you lose marks.

Practise Other current issuesFree diagnostic mock

More Other current issues questions