P7 class 1

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  • P7 class 1

    1. 1. P7
    2. 2. P7• Senior Audit team member
    3. 3. P7• Senior Audit team member• Advisory / Consultancy role
    4. 4. P7• Senior Audit team member• Advisory / Consultancy role• Real life scenarios
    5. 5. P7• Senior Audit team member• Advisory / Consultancy role• Real life scenarios• Application of knowledge
    6. 6. P7• Senior Audit team member• Advisory / Consultancy role• Real life scenarios• Application of knowledge• Practical & Commercial decisions
    7. 7. P7 - SyllabusSection A - Regulatory Environment
    8. 8. P7 - SyllabusSection A - Regulatory Environment • Money Laundering
    9. 9. P7 - SyllabusSection A - Regulatory Environment • Money Laundering • REgulations
    10. 10. P7 - SyllabusSection B - Ethics
    11. 11. P7 - SyllabusSection B - Ethics• Important
    12. 12. P7 - Syllabus Section B - Ethics• Important• Apply to scenario
    13. 13. P7 - Syllabus Section B - Ethics• Important• Apply to scenario• fraud
    14. 14. P7 - SyllabusSection C - Practice Management
    15. 15. P7 - SyllabusSection C - Practice Management• Commercial & Business head
    16. 16. P7 - SyllabusSection C - Practice Management• Commercial & Business head• Tenders / advertising
    17. 17. P7 - SyllabusSection C - Practice Management• Commercial & Business head• Tenders / advertising• acceptance of clients
    18. 18. P7 - SyllabusSection C - Practice Management• Commercial & Business head• Tenders / advertising• acceptance of clients• Monitoring
    19. 19. P7 - SyllabusSection D - Audit of Historic Info
    20. 20. P7 - SyllabusSection D - Audit of Historic Info• Audit processes
    21. 21. P7 - SyllabusSection D - Audit of Historic Info• Audit processes• In every exam
    22. 22. P7 - SyllabusSection D - Audit of Historic Info• Audit processes• In every exam• Planning to gathering evidence
    23. 23. P7 - SyllabusSection D - Audit of Historic Info• Audit processes• In every exam• Planning to gathering evidence• Review
    24. 24. P7 - SyllabusSection E - Other Assignments
    25. 25. P7 - Syllabus Section E - Other Assignments• Of prospective information
    26. 26. P7 - Syllabus Section E - Other Assignments• Of prospective information• outsourcing
    27. 27. P7 - Syllabus Section E - Other Assignments• Of prospective information• outsourcing• forensic audits
    28. 28. P7 - Syllabus Section E - Other Assignments• Of prospective information• outsourcing• forensic audits• impact of these on external audit
    29. 29. P7 - SyllabusSection F - Reporting
    30. 30. P7 - SyllabusSection F - Reporting • conclude on work performed
    31. 31. P7 - SyllabusSection F - Reporting • conclude on work performed • communicate opinion
    32. 32. P7 - SyllabusSection G - Current Developments
    33. 33. P7 - SyllabusSection G - Current Developments• not tested in isolation
    34. 34. P7 - SyllabusSection G - Current Developments• not tested in isolation• impact on assignment
    35. 35. The Exam
    36. 36. The Exam• Section A: 2 Case Studies (50 - 70 marks)
    37. 37. The Exam• Section A: 2 Case Studies (50 - 70 marks)• Covers many syllabus areas
    38. 38. The Exam• Section A: 2 Case Studies (50 - 70 marks)• Covers many syllabus areas• Section B: 2 from 3 shorter scenario questions
    39. 39. The Exam• Section A: 2 Case Studies (50 - 70 marks)• Covers many syllabus areas• Section B: 2 from 3 shorter scenario questions• More focussed on one area
    40. 40. The Exam
    41. 41. The Exam• Key Features
    42. 42. The Exam• Key Features• Scenario based (application!)
    43. 43. The Exam• Key Features• Scenario based (application!)• Professional Marks
    44. 44. The Exam• Key Features• Scenario based (application!)• Professional Marks• Structure, tone, persuasiveness
    45. 45. • Failing to answer the actual question requirements• Discussing too few points• Identifying points but failing to expand on them • Lack of knowledge on certain syllabus areas • Illegible handwriting and inadequate presentation
    46. 46. • Answer the actual requirements • Discuss many points • expand on them • Know all syllabus areas•Write nicely with lots of gaps
    47. 47. Get the KnowledgeKnow your P2 stuff Apply to scenario!
    48. 48. Markets
    49. 49. Markets
    50. 50. Markets Confidence
    51. 51. Markets Confidence
    52. 52. Markets ConfidenceReduce Risk
    53. 53. Markets ConfidenceReduce Risk
    54. 54. MarketsAssurance Confidence Reduce Risk
    55. 55. MarketsAssurance Confidence Reduce Risk
    56. 56. Want MarketsAssurance Confidence Reduce Risk
    57. 57. Want Markets NeedAssurance Confidence Reduce Risk
    58. 58. Want Markets Need SeekAssurance Confidence Reduce Risk
    59. 59. Markets Need Seek WantAssurance Confidence Reduce Risk
    60. 60. Markets Seek WantAssurance Confidence Need Reduce Risk
    61. 61. Markets WantAssurance Confidence Need Seek Reduce Risk
    62. 62. Markets WantAssurance Assurance Confidence Virtuous Circle Need Seek Reduce Risk
    63. 63. Failure
    64. 64. Failure
    65. 65. Failure Less Confidence
    66. 66. Failure Less Confidence
    67. 67. Failure Less ConfidenceMoreRisk
    68. 68. Failure Less ConfidenceMoreRisk
    69. 69. FailureIncreased LessRegulation Confidence More Risk
    70. 70. FailureIncreased LessRegulation Confidence More Risk
    71. 71. FailureIncreased Regulation Less ConfidenceRegulation Vicious Circle More Risk
    72. 72. Self - Regulation
    73. 73. Co rp or ate Self - Regulation Fa ilu re s
    74. 74. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s
    75. 75. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s IFAC cant impose ISAs globally
    76. 76. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s IFAC cant impose ISAs globally Locally adapted ISAs
    77. 77. Co rp Gl or ob ate ali Self - Regulation sa Fa tio ilu n re s IFAC cant impose ISAs globally Locally adapted ISAs Clarity Project
    78. 78. Corporate Governance Audit Committees
    79. 79. Corporate Governance Audit CommitteesHelps Public Confidence
    80. 80. Corporate Governance Audit CommitteesHelps Public Confidence Helps Directors with FR
    81. 81. Corporate Governance Audit CommitteesHelps Public Confidence Helps Directors with FR Helps keep external audit independent
    82. 82. Corporate Governance Independent, NEDs Audit CommitteesHelps Public Confidence Helps Directors with FR Helps keep external audit independent
    83. 83. Corporate Governance Audit Committees
    84. 84. Corporate Governance Audit CommitteesReview IC
    85. 85. Corporate Governance Audit CommitteesReview IC Review IA
    86. 86. Corporate Governance Audit CommitteesReview IC Review IA Review accounts
    87. 87. Corporate Governance Audit CommitteesReview IC Review IA Review accounts Recommend Auditors
    88. 88. Corporate Governance Audit CommitteesReview IC Review IA Review accounts Recommend Auditors Ensure Compliance
    89. 89. Money Laundering
    90. 90. Money Laundering Concealing true origin of illegal proceeds
    91. 91. Money Laundering Concealing true origin of illegal proceedsFinancial action task force
    92. 92. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence
    93. 93. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence
    94. 94. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence Record Keeping
    95. 95. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence Record Keeping Suspicious transactions reported
    96. 96. Money Laundering Concealing true origin of illegal proceeds Financial action task forceMake money laundering a criminal offence Customer due diligence Record Keeping Suspicious transactions reported International Cooperation
    97. 97. Money Laundering Offences
    98. 98. Money Laundering OffencesDisguising criminal property
    99. 99. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property
    100. 100. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property Tipping off
    101. 101. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property Tipping off No procedures
    102. 102. Money Laundering OffencesDisguising criminal propertyAcquiring criminal property Tipping off No procedures Not following procedures
    103. 103. Money Laundering OffencesDisguising criminal property Tax evasionAcquiring criminal property cash Tipping off No procedures Not following procedures
    104. 104. Money Laundering Offences Disguising criminal property Tax evasionCash saved from notcriminal property Acquiring cash complying with regulations Tipping off No procedures Not following procedures
    105. 105. Money Laundering & ETHICS
    106. 106. Money Laundering & ETHICSClient confidentiality v Legal responsibility
    107. 107. Money Laundering & ETHICS Client confidentiality v Legal responsibilityNo breach of professional duty to report in good faith
    108. 108. Money Laundering & ETHICS Client confidentiality v Legal responsibilityNo breach of professional duty to report in good faith Statutory protection given too
    109. 109. Procedures recommended by FATF
    110. 110. Procedures recommended by FATF Identifying customers
    111. 111. Procedures recommended by FATF Identifying customers Good record keeping
    112. 112. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions
    113. 113. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO
    114. 114. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training
    115. 115. Procedures recommended by FATF Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    116. 116. Procedures recommended by FATF No high risk ones Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    117. 117. Procedures recommended by FATFFull name and address (people) No high risk ones Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    118. 118. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customers Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    119. 119. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding (trusts) Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    120. 120. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of above (trusts) Good record keeping Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    121. 121. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping transactions Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    122. 122. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping suspicious activity transactions reports Reporting suspicious transactions Appointing MLRO Training Internal controls reducing risk
    123. 123. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping suspicious activity transactions reports cash big Reporting suspicious transactions deposits Appointing MLRO Training Internal controls reducing risk
    124. 124. Procedures recommended by FATF Full name and address (people) No high risk onesCertificate of incorp (business) Identifying customersOrigin of funding Of all Of above (trusts) Good record keeping suspicious activity transactions reports cash big Reporting suspicious transactions depositsFreq. exch into diff currencies Appointing MLRO Training Internal controls reducing risk
    125. 125. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits reason currencies Appointing MLRO Training Internal controls reducing risk
    126. 126. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Training Internal controls reducing risk
    127. 127. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Training Internal controls reducing risk
    128. 128. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Communicate all regulations Training Internal controls reducing risk
    129. 129. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Communicate all regulations Training How to recognise & deal Internal controls reducing risk
    130. 130. Procedures recommended by FATF Full name and address (people) No high risk ones Certificate of incorp (business) Identifying customersOrigin of fundingOverseas t/ns Of all Of above (trusts) transactionsGood record keeping suspicious activity no reports cash bigclear business Reporting suspicious transactions Freq. exch into diff deposits Senior - reports to a regulatory agency reason currencies Appointing MLRO Sole practitioners exempt Communicate all regulations Training How to recognise & deal Internal controls reducing risk Tested periodically
    131. 131. Placement
    132. 132. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement
    133. 133. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement
    134. 134. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering
    135. 135. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering disguise the source and ownership of the funds by creating complex layers of transactions
    136. 136. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering disguise the source and ownership of the funds by creating complex layers of transactions
    137. 137. introduction of cash acquired through illegal activities into the business is known as ‘placement’. Placement Layering disguise the source and ownership of the funds by creating complex layers of transactions Integration
    138. 138. Compliance with laws and regulations in an audit of financial statements: ISA 250
    139. 139. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:
    140. 140. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance
    141. 141. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance
    142. 142. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance  
    143. 143. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance:
    144. 144. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance
    145. 145. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance -  inspect any authority correspondence
    146. 146. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance -  inspect any authority correspondenceGet management written representations that all (suspected) non-compliance has been disclosed  
    147. 147. Compliance with laws and regulations in an audit of financial statements: ISA 250 The auditor should:  Understand the regulatory framework and the entity’s compliance  obtain sufficient evidence of compliance   Audit procedures to help identify non- compliance: -  Ask management about compliance -  inspect any authority correspondenceGet management written representations that all (suspected) non-compliance has been disclosed  Document (suspected) non-compliance and discussions with management and/or other parties.
    148. 148. Action if (suspected) non-compliance
    149. 149. Action if (suspected) non-compliance Understand its nature and circumstances
    150. 150. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS
    151. 151. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS  
    152. 152. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS  For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice.
    153. 153. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS   For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice. If insufficient evidence re suspected non-compliance, consider impact on the audit report (“limitation on scope”)
    154. 154. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS   For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice. If insufficient evidence re suspected non-compliance, consider impact on the audit report (“limitation on scope”)  Does it impact on other areas of the audit (eg overall risk assessment)
    155. 155. Action if (suspected) non-compliance Understand its nature and circumstances  Evaluate its possible effect on the FS   For suspected non-compliance, discuss with management. If compliance is not proved, take legal advice. If insufficient evidence re suspected non-compliance, consider impact on the audit report (“limitation on scope”)  Does it impact on other areas of the audit (eg overall risk assessment)  Consider who to report it to - those charged with governance and/ or shareholders and/or to authorities.

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