Question Tag: Anti-Money Laundering

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AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing

Discuss correspondence with previous auditors, reasons for change in appointments, and client identification under AML regulations.

Question

The idea to incorporate Peters & Shamsudeen Haulages Limited was mooted in London and it was incorporated on the return of Alhaji Shamsudeen to Nigeria. He met Peters during his stay in the UK. They had a good relationship which started in a coffee shop. As they met regularly in this shop, what to do on Alhaji Shamsudeen’s return to Nigeria became the subject of discussion. Based on their experiences, the idea of Peters & Shamsudeen Haulages Limited was birthed. Alhaji Shamsudeen subsequently returned to Nigeria, incorporated the company, obtained the appropriate expatriate quota, and Mr. Peters came in and started running the company.

On commencement, Sejumade Uzoma & Co was appointed the company’s external auditors. Whilst Mr. Peters was around, there was a good working relationship between the company and the audit firm.

After about nine years, Mr. Peters returned to the UK, leaving the company in the hands of Alhaji Shamsudeen. Subsequently, Sejumade Uzoma & Co started receiving complaints from Alhaji Shamsudeen and his key accounting staff. These complaints were rife even before the ninth month of the current year that Sejumade Uzoma & Co. decided not to continue with the engagement. The audit fee for the previous year had about thirty percent outstanding at this stage.

This was the position when Alhaji Shamsudeen approached your partner at Musa, Edewo & Co. (Chartered Accountants). Their discussion was fruitful for your firm, hence it was agreed by the partners that full professional procedures would be applied as normal. Part of the information available on interaction is that the year is almost ending, and there was uncertainty about the firm that will do the audit before the engagement of your firm. You have the responsibility of assisting your partner in ensuring that proper documentations would be done without any compromise.

Required:

a. According to professional requirements, discuss the issues your firm is expected to address in her correspondence with Sejumade Uzoma & Co. (10 Marks)

b. Evaluate the various circumstances that would lead to change in professional appointment. (5 Marks)

c. In consideration of the client, analyze the procedures necessary for proper client identification in accordance with anti-money laundering requirements. (5 Marks)

Answer

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Tags: Anti-Money Laundering, Client Identification, Ethical Issues, Professional Appointment
Level: Level 3

Topic: Ethical Issues in Auditing

AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits

Defines money laundering as an attempt to legitimize the origin of illicit funds.

Question

Money laundering is an attempt to ……………. the origin of the money by making it look legitimate or clean.

Answer

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Tags: Anti-Money Laundering, Compliance, Financial Crime, Legitimization, Money laundering
Level: Level 3

Topic: Risk Management in Audits
Series: NOV 2012

AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards

Discusses policies for anti-money laundering, indicators of money laundering, ethical issues, and audit procedures for going concern assumptions.

Question

You are a manager in Obuns & Co, a firm of Chartered Accountants, responsible for the audit of Akudre Plc, a listed entity, for the year ended 31 May 2020. The company operates in the textile industry and manufactures a range of goods, including clothing, linen, and soft furnishings. Akudre Plc employs approximately 750 sales staff across the country who sell the company’s products to both households and small to medium-sized businesses. Around 75% of Akudre Plc’s sales transactions are cash-based, and each sales staff member prepares a monthly cash sales report.

According to Akudre Plc’s CEO, Adu Oke, each staff member (including senior management) is encouraged to make cash sales on a commission basis to friends and family. Mr. Oke recently sold products worth N4,000,000 to business associates, depositing these funds into an offshore bank account under his sole control.

Review of Audit Working Papers:
A review of the audit working papers and an initial meeting with Mr. Oke revealed these issues:

Obuns & Co performed tax computations for Akudre Plc and completed tax returns for the company and Mr. Oke, invoiced as part of the total fee for audit and professional services. Mr. Oke’s personal tax return reflects numerous property transactions across international locations, which are detailed in off-shore accounts.

Financing Issue:
The audit committee has requested the audit engagement partner attend a post-audit meeting with the company’s bank officials, including the CFO and a representative from the audit committee, to renegotiate Akudre Plc’s lending facility. The audit partner is expected to confirm the company’s financial stability and verify that going concern procedures, including cash flow forecasts, were audited.

Required:
a. Discuss the policies and procedures which Obuns & Co. should have in place in relation to an anti-money laundering programme. (5 Marks)
b. Evaluate whether there are any indicators of money laundering activities by Akudre Plc or its staff. (4 Marks)
c. Describe the requirements of ISA 250: Consideration of Laws and Regulations in an Audit of Financial Statements. (5 Marks)
d. Discuss the actions required when an auditor identifies or suspects material instances of non-compliance by a client under ISA 250. (5 Marks)
e. Identify and evaluate any ethical threats and professional issues arising from the audit committee’s request for the audit engagement partner to attend the financing meeting. (3 Marks)
f. If loan finance is essential for the company’s survival and uncertainty exists regarding agreement finalization, evaluate additional audit procedures to ascertain if a material uncertainty exists. (10 Marks)
g. Evaluate the impact on the audit report in these scenarios:

i. Going concern assumption is appropriate, but material uncertainty exists.
ii. Going concern assumption is appropriate, material uncertainty exists, and disclosures are adequate.
iii. Going concern assumption is appropriate, material uncertainty exists, but disclosures are inadequate.
iv. Going concern assumption is inappropriate. (8 Marks)

Answer

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Tags: Anti-Money Laundering, Audit Procedures, Compliance, Ethical Threats, Going Concern, ISA 250
Level: Level 3

Topic: Regulatory Framework and Professional Standards

AAA – May 2018 – L3 – SC – Q7a – Audit Reporting

Prepare a management representation letter for Banana Follow Me Limited and outline anti-money laundering requirements for the audit team.

Question

You are the accountant to Banana Follow Me Limited and the audit of the financial statements for the year ended December 31, 2016 is currently ongoing. The company is a cocoa processing entity with various factories across the country. During the year end audit, the auditors, Akinfenwa & Company. (Chartered Accountants), observed that the company purchased
200,000 units of XYZ Plc. shares during the year and that the company had not recognised dividends on these shares as at year end. Upon enquiry, the Managing Director of the company explained that the
shares were purchased ex-dividend and had promised to provide suitable representations to confirm this. The auditors have verified this and are 106 satisfied with the explanation but expect representation letter which includes all other relevant representations from the company.

Required:

As the accountant to Banana Follow Me Limited, prepare the management representation letter to be issued to the company’s auditors, Akinfenwa & Company, confirming representations for the financial statements for the year ended December 31, 2016.

Answer

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Tags: Anti-Money Laundering, Audit Compliance, Representation Letter, Risk Management
Level: Level 3

Topic: Audit Reporting
Series: MAY 2018

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

Question

c) The growth of globalization has created more opportunities for free movement of capital/funds, which has resulted in a global canker called “money laundering.” There have been global efforts from governments and international institutions to combat the menace.

Required:
i) Describe in simple terms the concept of money laundering. (2 marks)
ii) Identify THREE risk-based approaches companies can adopt to combat the risk of money laundering. (4 marks)

Answer

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Tags: Anti-Money Laundering, Compliance, Financial Regulations, Money laundering, Risk-Based Approach
Level: Level 3

Topic: Emerging issues in finance and financial management, Regulatory framework and processes
Series: MAY 2016

AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability

Assess the global threat of money laundering and discuss Ghana’s efforts to combat money laundering.

Question

a) Money laundering has become a significant threat to the world’s political and economic order. World leaders are collaborating and cooperating in fighting money laundering. However, criminals are maliciously clever and, in some cases, ahead of law enforcement agencies. Every human being has to contribute to the fight against money laundering.

Required:

i) Assess why money laundering poses a big threat to the world’s political and economic order. (5 marks)

ii) Discuss FIVE (5) ways in which Ghana is contributing towards fighting money laundering globally. (5 marks)

Answer

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Tags: Anti-Money Laundering, Economic Impact, Ghana, Global Threat, Money laundering, Political Impact, Terrorism Financing
Level: Level 3

Topic: Current issues, Professional responsibility and liability
Series: MAY 2021

AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing

Discuss correspondence with previous auditors, reasons for change in appointments, and client identification under AML regulations.

Question

On commencement, Sejumade Uzoma & Co was appointed the company’s external auditors. Whilst Mr. Peters was around, there was a good working relationship between the company and the audit firm.

Required:

a. According to professional requirements, discuss the issues your firm is expected to address in her correspondence with Sejumade Uzoma & Co. (10 Marks)

b. Evaluate the various circumstances that would lead to change in professional appointment. (5 Marks)

c. In consideration of the client, analyze the procedures necessary for proper client identification in accordance with anti-money laundering requirements. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Client Identification, Ethical Issues, Professional Appointment
Level: Level 3

Topic: Ethical Issues in Auditing

AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits

Defines money laundering as an attempt to legitimize the origin of illicit funds.

Question

Money laundering is an attempt to ……………. the origin of the money by making it look legitimate or clean.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Compliance, Financial Crime, Legitimization, Money laundering
Level: Level 3

Topic: Risk Management in Audits
Series: NOV 2012

AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards

Discusses policies for anti-money laundering, indicators of money laundering, ethical issues, and audit procedures for going concern assumptions.

Question

Review of Audit Working Papers:
A review of the audit working papers and an initial meeting with Mr. Oke revealed these issues:

Obuns & Co performed tax computations for Akudre Plc and completed tax returns for the company and Mr. Oke, invoiced as part of the total fee for audit and professional services. Mr. Oke’s personal tax return reflects numerous property transactions across international locations, which are detailed in off-shore accounts.

i. Going concern assumption is appropriate, but material uncertainty exists.
ii. Going concern assumption is appropriate, material uncertainty exists, and disclosures are adequate.
iii. Going concern assumption is appropriate, material uncertainty exists, but disclosures are inadequate.
iv. Going concern assumption is inappropriate. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Audit Procedures, Compliance, Ethical Threats, Going Concern, ISA 250
Level: Level 3

Topic: Regulatory Framework and Professional Standards

AAA – May 2018 – L3 – SC – Q7a – Audit Reporting

Prepare a management representation letter for Banana Follow Me Limited and outline anti-money laundering requirements for the audit team.

Question

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Audit Compliance, Representation Letter, Risk Management
Level: Level 3

Topic: Audit Reporting
Series: MAY 2018

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

Question

Required:
i) Describe in simple terms the concept of money laundering. (2 marks)
ii) Identify THREE risk-based approaches companies can adopt to combat the risk of money laundering. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Compliance, Financial Regulations, Money laundering, Risk-Based Approach
Level: Level 3

Topic: Emerging issues in finance and financial management, Regulatory framework and processes
Series: MAY 2016

AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability

Assess the global threat of money laundering and discuss Ghana’s efforts to combat money laundering.

Question

Required:

i) Assess why money laundering poses a big threat to the world’s political and economic order. (5 marks)

ii) Discuss FIVE (5) ways in which Ghana is contributing towards fighting money laundering globally. (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Anti-Money Laundering, Economic Impact, Ghana, Global Threat, Money laundering, Political Impact, Terrorism Financing
Level: Level 3

Topic: Current issues, Professional responsibility and liability
Series: MAY 2021

Question Tag: Anti-Money Laundering

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AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing

Discuss correspondence with previous auditors, reasons for change in appointments, and client identification under AML regulations.

AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits

Defines money laundering as an attempt to legitimize the origin of illicit funds.

AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards

Discusses policies for anti-money laundering, indicators of money laundering, ethical issues, and audit procedures for going concern assumptions.

AAA – May 2018 – L3 – SC – Q7a – Audit Reporting

Prepare a management representation letter for Banana Follow Me Limited and outline anti-money laundering requirements for the audit team.

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability

Assess the global threat of money laundering and discuss Ghana’s efforts to combat money laundering.

AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing

Discuss correspondence with previous auditors, reasons for change in appointments, and client identification under AML regulations.

AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits

Defines money laundering as an attempt to legitimize the origin of illicit funds.

AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards

Discusses policies for anti-money laundering, indicators of money laundering, ethical issues, and audit procedures for going concern assumptions.

AAA – May 2018 – L3 – SC – Q7a – Audit Reporting

Prepare a management representation letter for Banana Follow Me Limited and outline anti-money laundering requirements for the audit team.

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability

Assess the global threat of money laundering and discuss Ghana’s efforts to combat money laundering.

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Question Tag: Anti-Money Laundering

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AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing

Discuss correspondence with previous auditors, reasons for change in appointments, and client identification under AML regulations.

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AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits

Defines money laundering as an attempt to legitimize the origin of illicit funds.

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AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards

Discusses policies for anti-money laundering, indicators of money laundering, ethical issues, and audit procedures for going concern assumptions.

You're reporting an error for "AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards"

AAA – May 2018 – L3 – SC – Q7a – Audit Reporting

Prepare a management representation letter for Banana Follow Me Limited and outline anti-money laundering requirements for the audit team.

You're reporting an error for "AAA – May 2018 – L3 – SC – Q7a – Audit Reporting"

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

You're reporting an error for "AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes"

AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability

Assess the global threat of money laundering and discuss Ghana’s efforts to combat money laundering.

You're reporting an error for "AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability"

AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing

Discuss correspondence with previous auditors, reasons for change in appointments, and client identification under AML regulations.

You're reporting an error for "AAA – May 2022 – L3 – Q4 – Ethical Issues in Auditing"

AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits

Defines money laundering as an attempt to legitimize the origin of illicit funds.

You're reporting an error for "AAA – Nov 2012 – L3 – AII – Q10 – Risk Management in Audits"

AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards

Discusses policies for anti-money laundering, indicators of money laundering, ethical issues, and audit procedures for going concern assumptions.

You're reporting an error for "AAA – Nov 2020 – L3 – Q1 – Regulatory Framework and Professional Standards"

AAA – May 2018 – L3 – SC – Q7a – Audit Reporting

Prepare a management representation letter for Banana Follow Me Limited and outline anti-money laundering requirements for the audit team.

You're reporting an error for "AAA – May 2018 – L3 – SC – Q7a – Audit Reporting"

AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes

Describe money laundering and identify risk-based approaches companies can use to combat it.

You're reporting an error for "AFM – May 2016 – L3 – Q4c – Emerging issues in finance and financial management, Regulatory framework and processes"

AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability

Assess the global threat of money laundering and discuss Ghana’s efforts to combat money laundering.

You're reporting an error for "AAA – May 2021 – L3 – Q5a – Current issues | Professional responsibility and liability"

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