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Unformatted text preview: an acceptable level, and to obtain their agreement to the
modified independence requirements that are to be applied. 291.22 The firm shall communicate (for example, in an engagement letter) with the intended users
regarding the independence requirements that are to be applied with respect to the provision of
the assurance engagement. Where the intended users are a class of users (for example, lenders
in a syndicated loan arrangement) who are not specifically identifiable by name at the time the
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). 291.23 If the firm also issues an assurance report that does not include a restriction on use and
distribution for the same client, the provisions of paragraphs 291.25 to 291.27 do not change
the requirement to apply the provisions of paragraphs 291.1 to 291.159 to that assurance
engagement. If the firm also issues an audit report, whether or not it includes a restriction on 212 use and distribution, for the same client, the provisions of Section 290 shall apply to that audit
291.24 The modifications to the requirements of Section 291 that are permitted in the circumstances set
out above are described in paragraphs 291.25 to 291.27. Compliance in all other respects with
the provisions of Section 291 is required. 291.25 When the conditions set out in paragraphs 291.21 and 291.22 are met, the relevant provisions
set out in paragraphs 291.104 to 291.134 apply to all members of the engagement team, and
their immediate and close family members. In addition, a determination shall be made as to
whether threats to independence are created by interests and relationships between the
assurance client and the following other members of the assurance team:
(a) Those who provide consultation regarding technical or industry specific issues, transactions
or events; and
(b) Those who provide quality control for the engagement, including those who perform the
engagement quality control review.
An evaluation shall als...
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This document was uploaded on 04/03/2014.
- Spring '14