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Extra resources for ACCA Advanced Audit and Assurance P7 (Global) Course Notes ACP7CN07

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Total fee income for the firm is $500,000 with $300,000 arising from audit services. Last year a branch of the large national firm Anders Arthurson opened up in the same town and since that time Albion and Baggie Certified Accountants have been losing business. Albert has therefore launched an advertising campaign, of which he is very proud, to try to win clients away from Anders Arthurson. The campaign has consisted of the following quarter-page advert being placed in the local newspaper every day for three weeks.

The following considerations should be borne in mind when preparing advertisements or promotional material. 1 They should not bring ACCA into disrepute or bring discredit to the member, firm or the accountancy profession. 2 They should not discredit the service offered by other firms. 3 Care should be taken to ensure that any reference to fees does not mislead the reader as to the precise range of services and time commitment that the reference is intended to cover. g. UK Advertising Standards Authority’s Code of Advertising and Sales Promotion, notably as to legality, decency, clarity, honesty, and truthfulness.

There is no specific quality control department, but Steve gives an annual update on the firm's quality control procedures in August when he is not busy. Annual quality control reviews of audits are not undertaken due to the firm's size: the partners are in daily contact and discuss quality at their monthly meetings. However, as part of Steve's annual marketing review of clients, he identifies any clients perceived as risky due to their size or the firm's dependence on them. Human resources New joiners to the firm are generally accounting graduates from the local economics university to minimise training costs.

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