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Unformatted text preview: sertion-based or directreporting, there might be
several responsible parties. In determiningwhether it is necessary to apply the provisions in this
section to eachresponsible party in such engagements, the firm may take into accountwhether
an interest or relationship between the firm, or a member of theassurance team, and a particular
responsible party would create a threat toindependence that is not trivial and inconsequential in
the context of thesubject matter information. This will take into account factors such as:
• The materiality of the subject matter information (or of the subjectmatter) for which the
particular responsible party is responsible; and • The degree of public interest associated with the engagement. 92 If the firm determines that the threat to independence created by any suchinterest or relationship
with a particular responsible party would be trivialand inconsequential, it may not be necessary
to apply all of the provisionsof this section to that responsible party. Documentation
291.29 Documentation provides evidence of the professional accountant’sjudgments in forming
conclusions regarding compliance with independencerequirements. The absence of
documentation is not a determinant ofwhether a firm considered a particular matter nor whether
it is independent.
The professional accountant shall document conclusions regardingcompliance with
independence requirements, and the substance of anyrelevant discussions that support those
(a) When safeguards are required to reduce a threat to an acceptablelevel, the professional
accountant shall document the nature of thethreat and the safeguards in place or applied
that reduce the threat toan acceptable level; and
(b) When a threat required significant analysis to determine whethersafeguards were necessary
and the professional accountant concludedthat they were not because the threat was already
at an acceptablelevel, the professional accountant shall document the nature of thethreat
and the rationale for the conclusion. Engagement Period
291.30 Independence from the assurance client is required both during theen...
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This document was uploaded on 04/03/2014.
- Spring '14