Audit response to significant risk identifed for audit engagement

In any audit participation – it’s mandatory to identify substantial risk that is unique to individual engagement as required by global quality of auditing. The substantial risk identified requires auditors’ special factor in designing and executing the audit processes.

For instance, for active business, the auditor can be aware that the revenue might not be recorded in proper period since there may be incentive for management to overstate the earnings. Given that the oil price will be at low end cycle, there might be danger the gas & oil audit client might understate their supply for any onerous contract.

In summary, it’s crucial to develop a robust understanding of the audit client (including: business environment, settlement package of direction , etc) to determine significant risk.

When a matter is identified as significant risk – auditors will need to design analysis response that requires special consideration – i.e. carry… Read More

G20 finance ministers commit to digital tax policy by 2020


‘They also have agreed to work on mechanisms so that companies would see their gains taxed at a minimum levels.

Pat Sweet
Reporter, Accountancy Daily, published by Croner-i Ltd
Even the G20 finance ministers have signalled their support to the OECD’s’two pillars’ approach to handling International taxation issues, and pledged to agree to the introduction of a digital tax by 2020

The comments came against a backdrop where individual nations — especially the UK and France — have signalled their impatience with the time it’s taking to agree a global approach to digital services taxation, also have indicated they intend to proceed with a new tax regime within their respective jurisdictions.
‘In January, the 129 members of this Inclusive Framework agreed a policy note that identified the shapes of a solution based on two columns — one addressing the reallocation of taxing rights (Pillar 1) and the other based around a minimum taxation to address the res… Read More

Alternatives to the Emergency and Sinking Fund

Among the most frequent parts of fiscal wisdom would be to get a crisis fund. Dave Ramsey lists it . Businesses have from the start of time required working capital to be a successful enterprise. Investment property owners have maintenance reports and each of these groups regularly employee a sinking fund. (A sinking fund is a account assessed for use in…

Source… Read More

Risk Managers – Banking

Can someone please enlighten me on the part of Risk Managers in Banking? From what I can tell and based on prior experience, maybe not alot! If someone can tell what they are supposed to do, it’d be appreciated. Advertisements… Read More