Explain the provisions of Custody of Client Assets as given in Code of Ethics. What are the safeguards or measures to be taken to balance this threat?

Auditing and Assurance Revision Questions and Answers


While taking custody of Client Assets following things needs to be evaluated:
 Keep such assets separately from personal or firm assets;
 Use such assets only for the purpose for which they are intended;
 At all times be ready to account for those assets and any income, dividends, or gains generated, to any persons entitled to such accounting;
 Comply with all relevant laws and regulations relevant to the holding of and accounting for such assets.
 Make appropriate inquiries about the source of such assets and consider legal and regulatory obligations.
 Consider seeking legal advice where needed.

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