1. Corporate finance services
1.1. Threats
1.1.1. Assurance firm promote/deal/underwrite assurance client’s shares
1.1.2. Assurance firm commit a clienet to the terms of a transaction or consummate a transaction on the client’s behalf
1.1.3. Assurance firm provide services linked to financing, capital structure and allocation of client
1.2. Safeguards
1.2.1. Do not provide service
2. Information technology services
2.1. Threats
2.1.1. IT system for internal control/prepare FS
2.1.1.1. Design & implement a new IT system that forms a significant part of the internal control over financial reporting
2.2. Safeguards
2.2.1. Firm should not design/implement IT services for public interest entities
2.2.2. For non-public interest entities
2.2.2.1. Client acknowledges responsibility for internal controls
2.2.2.2. Client makes all management decisions
2.2.2.3. Client evaluate the adequacy & the result of the system
2.2.2.4. Use personnel who is not in the audit team to provide IT services & have the audit/non-assurance work review by a professional accountant
3. Internal audit services
3.1. Threats
3.1.1. Internal audit services that involve assuming management responsiblities
3.1.1.1. Set internal audit policies
3.1.1.2. Direct & take responsibility for the action of the entity’s IA employees
3.1.1.3. Decide which recommendations resulting from IA activities shall be implemented
3.1.1.4. Report the results of the IA activities to those charged with governance
3.1.1.5. Perform procedure that form part of the internal control
3.1.1.6. Take responsibility for design, implement and maintain internal control
3.2. Safeguards
3.2.1. Audit firm should not undertake to provide internal audit services to an audited entity
3.2.1.1. Auditors would place significant reliance on internal audit work performed by the audit firm
3.2.1.2. The firm would undertake the role of management
4. Service with assurance client
4.1. Threats
4.1.1. An individual assigned to a position that he/she can influence the conduct & outcome of the audit for 2 years after leaving the audit client
4.1.2. Audit staff are temporarily “loaned” to a client
4.2. Safeguards
4.2.1. Remove the individual from the assurance team
4.2.2. The agreement of “loaned” staff should only be for a short period of time & should not result in the individual performing non-audit services
4.2.3. Obtain a quality control review
4.2.4. Discuss the issue with audit committee
5. Preparing accounting records & FSs
5.1. Threats
5.1.1. Firm prepare accounting records & FSs & audit/review them
5.1.2. Auditors often assist management w/ the preparation of FSs & give advice about accounting treatments & journal entries
5.2. Safeguards
5.2.1. Firm should not prepare accounts or FSs
5.2.2. Using other staff members that is not in assurance team
5.2.3. Implement policies & procedures to prohibit the individual from making any managerial decisions
5.2.4. Require the source data for the accounting entries & underlying assumptions to be originated by the assurance client
6. Valuation services
6.1. Threats
6.1.1. An audit firm perform a valuation that will be included in in FSs audited by the firm
6.2. Safeguards
6.2.1. Firm shall not carry out any valuations that has material effect on FSs or involve significant degree of subjective judgement
6.2.2. If valuation is for an immaterial matter
6.2.2.1. Second partner review
6.2.2.2. Confirm that client understand the valuation and the assumptions used
6.2.2.3. Ensure that client acknowledges responsibility for the valuation
6.2.2.4. Use another personnel for the valuation and the audit
7. Tax services
7.1. Types of tax services
7.1.1. Prepare the tax return (tờ khai thuế): follow the tax regulations/tax law (low risk)
7.1.2. Calculate the tax for the purpose of recording accounting transactions: follow the accounting policy (a threat)
7.1.3. Prepare the tax planning or advisory (a threat)
7.1.4. Assist the client in tax dispute (a threat)
7.2. Threats
7.2.1. Tax calculation for the purpose of preparing the accounting entries for public interest entities
7.2.2. Tax planning and other tax advisory services: if the effectiveness of the tax advice depends on a particular accounting treatment/presentation in the FSs & the consequences of the tax advice would be material
7.2.3. Assist in tax dispute: Firm provide the service which has material effect on the FSs
7.3. Safeguards
7.3.1. Do not provide the service which
7.3.2. Assist in tax dispute: Use professionals that are not in the audit team to perform the service, or obtain advice from external tax professionals
8. Ligitation support services
8.1. Threats
8.1.1. Acting as an expert witness
8.2. Safeguards
8.2.1. Not provide for listed audited entities
8.2.2. For non-listed entities: No ligitation services