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Extra resources for ACCA P7 Advanced Audit and Assurance

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Questions in this paper are unlikely to ask for simple repetition of this knowledge, but are more likely to require explanation or discussion of the reasons behind the regulations. com 1 International regulatory frameworks for audit and assurance services Major developments in international regulation of audit and assurance have recently concluded, with farreaching effects on ISAs. 1 The need for laws, regulations, standards and other guidance Corporate scandals, such as Enron and Worldcom in the US, Olympus in Japan and Autonomy in the UK, have brought the audit profession under close scrutiny from investors, businesses, regulators and others.

Disadvantages It is possible that the audit committee's approach may prove somewhat pedestrian, resolving little of consequence but acting as a drag on the drive and entrepreneurial flair of the company's senior executives. (ii) Unless the requirement for such a body were made compulsory, as in the US, it is likely that those firms most in need of an audit committee would nevertheless choose not to have one. (Note. ) Advantages as tud (i) By its very existence, the audit committee should make the executive directors more aware of their duties and responsibilities.

2 International recommendations and UK law tud An intergovernmental body, the Financial Action Task Force on Money Laundering (FATF) was established to set standards and develop policies to combat money laundering and terrorist financing. In 1990, FATF issued 49 recommendations for governments on how to combat these offences and these recommendations have now been endorsed by more than 130 countries. Relevant legislation in the UK includes: The Terrorism Act 2000 The Proceeds of Crime Act 2002 Money Laundering Regulations 2007 as    In Singapore, there are various pieces of legislation: Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 United Nations Act 2001 United Nations (Anti-Terrorism Measures) Regulations 2001 Terrorism (Suppression of Financing) Act 2002.

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