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retrieval. These services may create a self-review or advocacy threat.
290.208 If the firm provides a litigation support service to an audit client and the service involves
estimating damages or other amounts that affect the financial statements on which the firm will
express an opinion, the valuation service provisions included in paragraphs 290.175 to 290.180
shall be followed. In the case of other litigation support services, the significance of any threat
created shall be evaluated and safeguards applied when necessary to eliminate the threat or
reduce it to an acceptable level.
290.209 For the purpose of this section, legal services are defined as any services for which the person
providing the services must either be admitted to practice law before the courts of the
jurisdiction in which such services are to be provided or have the required legal training to
practice law. Such legal services may include, depending on the jurisdiction, a wide and
diversified range of areas including both corporate and commercial services to clients, such as
contract support, litigation, mergers and acquisition legal advice and support and assistance to
clients’ internal legal departments. Providing legal services to an entity that is an audit client
may create both self-review and advocacy threats.
290.210 Legal services that support an audit client in executing a transaction (for example, contract
support, legal advice, legal due diligence and restructuring) may create self-review threats. The
existence and significance of any threat will depend on factors such as:
• The nature of the service; • Whether the service is provided by a member of the audit team; and • The materiality of any matter in relation to the client’s financial statements. The significance of any threat created shall be evaluated and safeguards applied when
necessary to eliminate the threat or reduce it to an acceptable level. Examples of such
• Using prof...
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This document was uploaded on 04/03/2014.
- Spring '14