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intimidation and familiarity threats. Documentation
290.29 Documentation provides evidence of the professional accountant’s judgments in forming
conclusions regarding compliance with independence requirements. The absence of
documentation is not a determinant of whether a firm considered a particular matter nor whether
it is independent. The professional accountant shall document conclusions regarding compliance
with independence requirements, and the substance of any relevant discussions that support those
(a) When safeguards are required to reduce a threat to an acceptable level, the professional
accountant shall document the nature of the threat and the safeguards in place or applied that
reduce the threat to an acceptable level; and
45 (b) When a threat required significant analysis to determine whether safeguards were necessary
and the professional accountant concluded that they were not because the threat was already
at an acceptable level, the professional accountant shall document the nature of the threat and
the rationale for the conclusion. Engagement Period
290.30 Independence from the audit client is required both during the engagement period and the period
covered by the financial statements. The engagement period starts when the audit team begins to
perform audit services. The engagement period ends when the audit report is issued. When the
engagement is of a recurring nature, it ends at the later of the notification by either party that the
professional relationship has terminated or the issuance of the final audit report.
290.31 When an entity becomes an audit client during or after the period covered by the financial
statements on which the firm will express an opinion, the firm shall determine whether any
threats to independence are created by:
(a) Financial or business relationships with the audit client during or after the period covered by
the financial statements but before accepting the audit engagement; or
(b) Previous services provided to the audit client.
290.32 If a non-assurance service was provided to the audit client during or after the period covered by
the financial statements but before the audit team begins to perform audit services and the service
would not be permitted during the period of the audit engagement, the firm sha...
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This document was uploaded on 04/03/2014.
- Spring '14