Audit and Assurance

You are the audit manager of Pilux Bhd, an audit client which is in the manufacturing industry and also listed in Bursa Malaysia. You have been asked to prepare a proposal of other professional services for the company. The client is growing rapidly and introducing more new products, yet still has an out-of-date information and accounting system. The company also has not undertaken any formal tax planning activities and feels that it pays a higher percentage of its income in taxes than its competitors. Additionally, it is concerned that its monitoring activities are inadequate because it does not have an internal control department.

Required:

1. IdentifyTHREE (3) non-audit services that a public accounting firm normally provide to its client.

(3 marks)

1. ExplainTHREE (3) types of non-audit services your firm should not provide to Pilux Bhd. because the threats to independence are too significant ang thus are prohibited under the code of ethics.

(6 marks)

1. DiscussTHREE (3) threat to the independence of the firm or team member regarding providing non-assurance services.

(6 marks)