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Unformatted text preview: le as to thepurpose, subject matter information and limitations of the report and
(b)explicitly agree to the application of the modified independencerequirements. Knowledge as
to the purpose, subject matter information, andlimitations of the report may be obtained by the
intended users through theirparticipation, either directly or indirectly through their
representative whohas the authority to act for the intended users, in establishing the nature
andscope of the engagement. Such participation enhances the ability of the firmto communicate
with intended users about independence matters, includingthe circumstances that are relevant to
the evaluation of the threats toindependence and the applicable safeguards necessary to
eliminate thethreats or reduce them to an acceptable level, and to obtain their agreementto the
modified independence requirements that are to be applied. 291.22 The firm shall communicate (for example, in an engagement letter) with theintended users
regarding the independence requirements that are to beapplied with respect to the provision of
the assurance engagement. Wherethe intended users are a class of users (for example, lenders in
a syndicatedloan arrangement) who are not specifically identifiable by name at the timethe
engagement terms are established, such users shall subsequently bemade aware of the
independence requirements agreed to by therepresentative (for example, by the representative
making the firm’sengagement letter available to all users). 291.23 If the firm also issues an assurance report that does not include a restrictionon use and
distribution for the same client, the provisions of paragraphs291.25 to 291.27 do not change the
requirement to apply the provisions ofparagraphs 291.1 to 291.159 to that assurance
engagement. If the firm alsoissues an audit report, whether or not it includes a restriction on use 91 anddistribution, for the same client, the provisions of Section 290 shall apply tothat audit
291.24 The modific...
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This document was uploaded on 04/03/2014.
- Spring '14