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Unformatted text preview: ting the particular circumstances.
290.158 Before the firm accepts an engagement to provide a non-assurance serviceto an audit client, a
determination shall be made as to whether providingsuch a service would create a threat to
independence. In evaluating thesignificance of any threat created by a particular non-assurance
service,consideration shall be given to any threat that the audit team has reason tobelieve is
created by providing other related non-assurance services. If athreat is created that cannot be
reduced to an acceptable level by theapplication of safeguards, the non-assurance service shall
not be provided.
290.159 Providing certain non-assurance services to an audit client may create athreat to independence
so significant that no safeguards could reduce thethreat to an acceptable level. However, the
inadvertent provision of such aservice to a related entity, division or in respect of a discrete
financialstatement item of such a client will be deemed not to compromiseindependence if any
threats have been reduced to an acceptable level byarrangements for that related entity, division
or discrete financial statementitem to be audited by another firm or when another firm reperforms thenon-assurance service to the extent necessary to enable it to takeresponsibility for
290.160 A firm may provide non-assurance services that would otherwise be restrictedunder this section
to the following related entities of the audit client:
(a) An entity, which is not an audit client, that has direct or indirectcontrol over the audit
client; (b) An entity, which is not an audit client, with a direct financial interestin the client if that
entity has significant influence over the client andthe interest in the client is material to
such entity; or (c) An entity, which is not an audit client, that is under common controlwith the audit
client,if it is reasonable to conclude that (a) the services do not create a self-reviewthreat
because the results of the services will not be s...
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This document was uploaded on 04/03/2014.
- Spring '14