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less than two years remaining or has exceeded the maximum service period allowed
when the client becomes a public interest entity, the partner may continue to serve in that
capacity for a maximum of two additional years before rotating off the engagement.
290.155 When a firm has only a few people with the necessary knowledge andexperience to serve as a
key audit partner on the audit of a public interestentity, rotation of key audit partners may not
be an available safeguard. [Ifan independent regulator in the relevant jurisdiction has
provided anexemption from partner rotation in such circumstances, an individual
mayremain a key audit partner for more than seven years, in accordance withsuch
regulation, provided that the independent regulator has specifiedalternative safeguards
which are applied, such as a regular independentexternal review.]If an independent regulator
in the relevant jurisdiction has provided an exemption from partner rotation in such
circumstances, an individual may remain a key audit partner for more than the maximum allowed
number of years, in accordance with such regulation, provided the independent regulator has
specified alternative safeguards which are applied, such as a regular independent external review. Provision of Non-assurance Services to Audit Clients
290.156 Firms have traditionally provided to their audit clients a range of non-assuranceservices that are
consistent with their skills and expertise.Providing non-assurance services may, however,
63 create threats to theindependence of the firm or members of the audit team. The threats
createdare most often self-review, self-interest and advocacy threats.
290.157 New developments in business, the evolution of financial markets andchanges in information
technology make it impossible to draw up an all-inclusivelist of non-assurance services that
might be provided to an auditclient. When specific guidance on a particular non-assurance
service is notincluded in this section, the conceptual framework shall be applied
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This document was uploaded on 04/03/2014.
- Spring '14