Hi I need some help on some with the below question. I have included my answer and the feedback provided by the assessor.

Q3. What risk management practices should a tax practitioner/advisor or accountant adopt to minimise the likelihood of negligence occurring?

They should ensure that they remain current with changes to tax laws, seek guidance from relevant professional associations and the applicable

codes of practice to ensure they meet the requisite standard of care. Ongoing monitoring and assessment of the probability of harm, the seriousness of the harm and the expense and difficulty of removing the risk of harm. Including a disclaimer on a client's letter of engagement stating the circumstances under which liability will not be accepted.

FEEDBACK: This is a theoretical question which is testing the tax agent (TPB) students have read/studied the textbook.

This question is asking about the standard (duty) of care and also asking how to minimise the likelihood of a breach.

What type of insurances they can purchase and what type ofprofessional bodies they can join to reduce their risks of breaching the duty of care, what are those?

How to minimise the likelihood of a breach.