Professional Ethics - Unit 32

trians
trians New MemberRegistered Posts: 10
Can anyone help me get my head around these questions please??????????

A) What is wrong with saying to your client that their fee will be based on a %age of the tax savings that you identify?

B) Why should your previous accountants not have sent your accounts in the confidential waste?

C) What two things should be considered before accepting clients maoney as an accountant, and what procedures should be in place for holding such monies?

Comments

  • zara5034
    zara5034 Well-Known Registered Posts: 170
    A: As I remember it, you cannot imply that you are going to make Tax savings for clients, as it is potentially misleading, you may, for instance, discover that they have actually underpaid for the last 10 years, where would that leave you....paying the client to complete their tax return?

    B: I really don't understand this question!

    C: I cannot quite remember the answers to this as it has never been applicable to me. However, I would consider the Money Laundering regulations and ensure that this is covered in the engagement letter

    The AAT site has got a code of ethics that can be downloaded, it should have all of the answers in there.
  • Diddy Mau
    Diddy Mau Well-Known Registered Posts: 238
    I agree with Zara
    A: this is misleading to the client, and you can't guarentee to save them money
    B: Also I dont understand this question, unless they are asking for how long should you keep the records for (6 years plus the current year, so 7 years)
    C: Yes one of these is definatly, money laundering. Where did the money come from, how did they get the money. Also you need to hold this money in a seperate account and any interest gained, if held for a long period of time, needs to be given to the client. As this is not your money, nor the interest gained.

    Hope this helps
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