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Provision of non-assurance services to audit client, Valuation service,…
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Valuation service
All audit clients
:red_cross:provide to audit client if:
- involve significant degree of subjectivity
- material effect on FS
Valuation :red_cross:involve significant degree of subjectivity
- underlying assumption established by law / regulations
- techniques & methodology used are based on generally accpeted stds / prescribed by law / regulations
- results performed by 2 / more parties not likely to be materially different
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- making assumptions relate to future developments, application of appropriate methodologies & techniques, compute certain value / range of values for an asset, liability / for biz as whole
Factors in evaluating the lvl of such threat
- the extent of client's involvement in determining & approving the valuation & methodology
- degree of subjectivity inherent in the items for valuations
- whether the valuation will have material effect on FS
- the extent & clarity of disclosures related to the valuation
- degree od dependency on future events
Safeguard
- using prof who are not audit team members
- appropriate reviewer not involved in non-assurance service review audit work / service performed
Accounting & bookkeeping
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Routine / mechanical
- require little / no prof judgement
Administrative services
- usually :red_cross:create threat
All audit clients
- assisting their routine / mechanical tasks
- require little / no prof judgement