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Unformatted text preview: dures relating to independence
communications with audit committees, or others charged with governance of
the client. In the case of the financial statement audit of listed entities, the firm
should communicate orally and in writing at least annually, all relationships and
other matters between the firm, network firms and the financial statement audit
client that in the firm’s professional judgment may reasonably be thought to
bear on independence.
Matters to be communicated will vary in each
circumstance and should be decided by the firm, but should generally address
the relevant matters set out in this section. Engagement Period 290.44 The members of the assurance team and the firm should be independent of the
assurance client during the period of the assurance engagement. The period of
the engagement starts when the assurance team begins to perform assurance
services and ends when the assurance report is issued, except when the
assurance engagement is of a recurring nature. If the assurance engagement is
expected to recur, the period of the assurance engagement ends with the
notification by either party that the professional relationship has terminated or
the issuance of the final assurance report, whichever is later. 290.45 In the case of a financial statement audit engagement, the engagement period
includes the period covered by the financial statements reported on by the firm.
When an entity becomes a financial statement audit client during or after the 56 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants
[Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS period covered by the financial statements that the firm will report on, the firm
should consider whether any threats to independence may be created by:
(a) Financial or business relationships with the audit client during or after the
period covered by the financial statements, but prior to the acceptance of
the financial statement audit engagement; or (b) Previous services provided to the audit client. Similarly, in the case of an assurance engagement that is not a financial
statement audit engagement, the firm should consider whether any financial or
business relationships or previous services may create threats to independence. 290.46 If a non-assurance service was provided to the financial statement audit client
during or after the period covered by the financial statements but before the
commencement of professional services in connection with the financial
statement audit and the service would be prohibited during the period of the
audit engagement, consideration should be given to the threats to
independence, if any, arising from the service. If the threat is other than clearly
insignificant, safeguards should be considered and applied as necessary to
reduce the threat to an acceptable level. Such safeguards may include:
(a) Discussing independence issues related to the provision of the nonassurance service with those charged...
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This document was uploaded on 09/23/2013.
- Fall '13