Bookkeeping threat to independence

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  • #172136
    hawkmante
    Member

    So, after not passing with Becker on AUD I have diverted to Wiley. A question came up and it was to the extent.. Which service may a covered member still provide for an audit client. The answer was bookkeeping. Becker taught me otherwise. Any explanations?

    BEC - 81 11/30/11 Praise God
    FAR - 84 7/11/11
    AUD -70,64,72, IM DONE!! 90 7/5/12
    REG - 84 10/07/11

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  • #353671
    hawkmante
    Member

    https://www.aicpa.org/interestareas/professionalethics/resources/downloadabledocuments/nonattest_q_a.pdf

    found a cool link on impairment of independence.

    BEC - 81 11/30/11 Praise God
    FAR - 84 7/11/11
    AUD -70,64,72, IM DONE!! 90 7/5/12
    REG - 84 10/07/11

    #353672
    hawkmante
    Member

    anybody?

    BEC - 81 11/30/11 Praise God
    FAR - 84 7/11/11
    AUD -70,64,72, IM DONE!! 90 7/5/12
    REG - 84 10/07/11

    #353673
    Anonymous
    Inactive

    I THINK bookkeeping is alright when the company is a nonissuer.

    PCAOB does not allow it.

    #353674

    Saw this link come through my email today thought of your post. Looks like they are changing some things around. Hope this helps…

    https://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/ExposureDrafts/DownloadableDocuments/2011NovemberEDAdoptedFirstRoundofInterpretation101-3.pdf

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    -----------------------------------------------------------------------
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    REG - 66('11), 69('12), 12/06/12 77 PASSED!!
    BEC - 58('10), 74('12), 01/05/13 77 PASSED!!!
    AUD - 43('11), 66('12), 69('13), 74('13) 7/29/13 85 PASSED!!!!!

    (Combinations of Roger, Yaeger, Wiley Book, Wiley TB, & NINJA Notes)

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    #353675
    GettingMyCPA
    Member

    This is an odd answer, I would have probably gotten it incorrect if I was asked it. I have been an auditor for 12 years (External Nonprofit and government auditor) and we tell our clients that we can't provide them with bookkeeping services because it impairs our independence and we would them be auditing our own work.

    Reading some of the above links I think the theory behind it is you can still provide the bookkeeping services provided that you do not exercise any management decisions in regard to the services you perform. Management tells you what to do, and approves all of the adjustments etc.

    I suppose it can be done in the non-PCOAB sector, but it is not commonly practiced.

    FAR - July 3
    AUD - Aug 17

    #353676
    lateralus ag
    Member

    I think you misunderstood what Becker was teaching. I remember that question from the passmaster and the correct answer was bookkeeping for a non-public audit.

    FAR 88
    REG 89
    AUD 89
    BEC 86
    DONE!!!
    Using Becker Review and Becker Final Review, and Ninja Audio for BEC

    #353677
    hawkmante
    Member

    becker flash card 1-48. what services may not be provided to an audit client (front)

    (Back)

    -bookkeeping services

    -financial info systems design and implementation

    -appraisal and valuations services

    -actuarial services

    -management & HR

    – internal audit out sourcing

    -investment related services

    -legal services

    -expert services unrelated to the audit

    Thanks everyone for your help

    BEC - 81 11/30/11 Praise God
    FAR - 84 7/11/11
    AUD -70,64,72, IM DONE!! 90 7/5/12
    REG - 84 10/07/11

Viewing 7 replies - 1 through 7 (of 7 total)
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