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Unformatted text preview: jectmatter information of the assurance engagement, the threat
created wouldbe so significant that no safeguards could reduce the threat to an acceptablelevel.
Consequently, such individuals shall not be assigned to the assuranceteam.
291.134 Self-interest, self-review or familiarity threats may be created if, before theperiod covered by
the assurance report, a member of the assurance team hadserved as director or officer of the
assurance client, or was an employee in aposition to exert significant influence over the subject
matter information ofthe assurance engagement. For example, such threats would be created if
adecision made or work performed by the individual in the prior period,while employed by the
client, is to be evaluated in the current period as partof the current assurance engagement. The
existence and significance of anythreats will depend on factors such as:
• The position the individual held with the client; • The length of time since the individual left the client; and 103 • The role of the professional on the assurance team. The significance of any threat shall be evaluated and safeguards appliedwhen necessary to
reduce the threat to an acceptable level. An example ofsuch a safeguard is conducting a review
of the work performed by theindividual as part of the assurance team. Serving as a Director or Officer of an Assurance Client
291.135 If a partner or employee of the firm serves a director or officer of an assuranceclient, the selfreview and self-interest threats would be so significant that nosafeguards could reduce the
threats to an acceptable level. Accordingly, nopartner or employee shall serve as a director or
officer of an assurance client.
291.136 The position of Company Secretary has different implications in differentjurisdictions. Duties
may range from administrative duties, such as personnelmanagement and the maintenance of
company records and registers, to duties asdiverse as ensuring that the company complies with
regulation or providingadvice on corporate governance matters. Generally, this position is seen
toimply a close association with the entity.
291.137 If a partn...
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This document was uploaded on 04/03/2014.
- Spring '14