(iii) Can audit teams cross sell services to their clients? (4 marks)Required:For EACH of

Question

(iii) Can audit teams cross sell services to their clients? (4 marks)

Required:

For EACH of the three FAQs, explain the threats to objectivity that may arise and the safeguards that should

be available to manage them to an acceptable level.

NOTE: The mark allocation is shown against each of the three questions.

Answer 1

正确答案：
(iii) Cross selling services
The practice of cross selling is intended to give incentives to members of audit teams to concentrate their efforts on the
selling of non-audit services to audit clients.
It is not inappropriate for an audit firm to cross sell or for members of the audit team to recognise on an ongoing basis
the need of a client to have non audit services. However it should not be an aim of the audit team member to seek out
such opportunities.
Boleyn should have policies and procedures to ensure that, in relation to each audit client:
■ the objectives of the members of the audit team do not include selling of non-audit services to the audit client;
■ the criteria for evaluating the performance of members of the audit team do not include success in selling nonaudit
services to the audit client;
■ no specific element of remuneration of a member of the audit team and no decision concerning promotion within
the audit firm is based on his or her success in selling non-audit services to the audit client; and
■ the ethics partner being available for consultation when needed.
Therefore objectives such as the following are inappropriate:
■ to meet a quota of opportunities;
■ to specifically make time to discuss with clients which non-audit services they should consider;
■ to develop identified selling opportunities.
An audit engagement partner’s performance should be judged on the quality and integrity of the audit only. There are
no restrictions on normal partnership profit-sharing arrangements.