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Unformatted text preview: ts related to the development of audit methodologies, manuals, or training
courses, this would not in itself create a network. Further, an association between a firm and an
otherwise unrelated entity to jointly provide a service or develop a product does not in itself
create a network.
290.17 Where the larger structure is aimed at cooperation and the entities within the structure share
common ownership, control or management, it is deemed to be a network. This could be achieved
by contract or other means.
290.18 Where the larger structure is aimed at co-operation and the entities within the structure share
common quality control policies and procedures, it is deemed to be a network. For this purpose,
common quality control policies and procedures are those designed, implemented and monitored
across the larger structure.
290.19 Where the larger structure is aimed at co-operation and the entities within the structure share a
common business strategy, it is deemed to be a network. Sharing a common business strategy
involves an agreement by the entities to achieve common strategic objectives. An entity is not
deemed to be a network firm merely because it co-operates with another entity solely to respond
jointly to a request for a proposal for the provision of a professional service.
290.20 Where the larger structure is aimed at co-operation and the entities within the structure share the
use of a common brand name, it is deemed to be a network. A common brand name includes
common initials or a common name. A firm is deemed to be using a common brand name if it
includes, for example, the common brand name as part of, or along with, its firm name, when a
partner of the firm signs an audit report.
290.21 Even though a firm does not belong to a network and does not use a common brand name as part
of its firm name, it may give the appearance that it belongs to a network if it makes reference in
its stationery or promotional materials to being a member of an association of firms. Accordingly, 43 if care is not taken in how a firm describes such memberships, a perception may be created that
the firm belongs to a network.
290.22 If a firm sells a component of its p...
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This document was uploaded on 04/03/2014.
- Spring '14