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Unformatted text preview: gagement acceptance procedures for services that may involve the holding
of client assets, a professional accountant in public practice shall make appropriate inquiries
about the source of such assets and consider legal and regulatory obligations. For example, if the
assets were derived from illegal activities, such as money laundering, a threat to compliance with
the fundamental principles would be created. In such situations, the professional accountant may
consider seeking legal advice. PART B
280.1 A professional accountant in public practice shall determine when providing any professional
service whether there are threats to compliance with the fundamental principle of objectivity
resulting from having interests in, or relationships with, a client or its directors, officers or
employees. For example, a familiarity threat to objectivity may be created from a family or close
personal or business relationship. 280.2 A professional accountant in public practice who provides an assurance service shall be
independent of the assurance client. Independence of mind and in appearance is necessary to
enable the professional accountant in public practice to express a conclusion, and be seen to
express a conclusion, without bias, conflict of interest, or undue influence of others. Sections 290
and 291 provide specific guidance on independence requirements for professional accountants in
public practice when performing assurance engagements. 280.3 The existence of threats to objectivity when providing any professional service will depend upon
the particular circumstances of the engagement and the nature of the work that the professional
accountant in public practice is performing. 280.4 A professional accountant in public practice shall evaluate the significance of any threats and
apply safeguards when necessary to eliminate them or reduce them to an acceptable level.
Examples of such safeguards include:
• Withdrawing from the engagem...
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This document was uploaded on 04/03/2014.
- Spring '14