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Unformatted text preview: y name at the time the
205 engagement terms are established, such users shall subsequently be made aware of the
independence requirements agreed to by the representative (for example, by the representative
making the firm’s engagement letter available to all users).
290.503 If the firm also issues an audit report that does not include a restriction on use and distribution
for the same client, the provisions of paragraphs 290.500 to 290.514 do not change the
requirement to apply the provisions of paragraphs 290.1 to 290.232 to that audit engagement.
290.504 The modifications to the requirements of Section 290 that are permitted in the circumstances set
out above are described in paragraphs 290.505 to 290.514. Compliance in all other respects
with the provisions of Section 290 is required.
Public Interest Entities
290.505 When the conditions set out in paragraphs 290.500 to 290.502 are met, it is not necessary to
apply the additional requirements in paragraphs 290.100 to 290.232 that apply to audit
engagements for public interest entities.
290.506 When the conditions set out in paragraphs 290.500 to 290.502 are met, references to audit client
do not include its related entities. However, when the audit team knows or has reason to believe
that a relationship or circumstance involving a related entity of the client is relevant to the
evaluation of the firm’s independence of the client, the audit team shall include that related
entity when identifying and evaluating threats to independence and applying appropriate
Networks and Network Firms
290.507 When the conditions set out in paragraphs 290.500 to 290.502 are met, reference to the firm
does not include network firms. However, when the firm knows or has reason to believe that
threats are created by any interests and relationships of a network firm, they shall be included in
the evaluation of threats to independence.
Financial Interests, Loans and Guarantees, Close Business Relationships and Family and Personal
290.508 When the conditions set out in paragraphs 290.500 to 290.502 are met, the relevant provisions
set out in para...
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- Spring '14