Unformatted text preview: 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.
290.502 The firm shall communicate (for example, in an engagement letter) with theintended users
regarding the independence requirements that are to be appliedwith respect to the provision of
the audit engagement. Where the intended usersare a class of users (for example, lenders in a
syndicated loan arrangement) whoare not specifically identifiable by name at the time the
engagement terms areestablished, such users shall subsequently be made aware of the
independencerequirements agreed to by the representative (for example, by the
representativemaking 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 onuse and distribution
for the same client, the provisions of paragraphs290.500 to 290.514 do not change the
requirement to apply the provisionsof paragraphs 290.1 to 290.232 to that audit engagement.
290.504 The modifications to the requirements of Section 290 that are permitted in thecircumstances 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 isnot necessary to
apply the additional requirements in paragraphs 290.100 to290.232 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, whenthe audit team knows or has...
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This document was uploaded on 04/03/2014.
- Spring '14