As a sole practitioner, how can I manage the self-review threat to an acceptable level when I provide accounting and bookkeeping services to my small business clients?
We recognise that practitioners with small clients have to manage the threat of providing bookkeeping services in a practical manner. CI/52 states that explaining the results and obtaining client approval is an appropriate way to reduce the threat to an acceptable level. This is simple to do since practitioners already do it now. Another safeguard is to ensure that only the client prepares source documents such as purchase orders, time cards, invoices (Rule 204.4(23)). This is quite easy since public practice CAs are normally not involved in creating these documents. It should be noted that trial balances and account reconciliations are not considered source documents, so it is not problematic to create these documents as a part of your service. Furthermore, it is suggested that members consider having another professional review complex transactions when they arise (CI/143). This is a prudent practice that many members already follow since it’s in their clients’ best interest, and the
