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responsible for the subject matter.
Multiple Responsible Parties
In both assertion-based assurance engagements and direct reporting assuranceengagements there may be
several responsible parties. For example, a publicaccountant in public practice may be asked to provide
assurance on the monthlycirculation statistics of a number of independently owned newspapers.
Theassignment could be an assertion based assurance engagement where eachnewspaper measures its
circulation and the statistics are presented in an assertion thatis available to the intended users.
Alternatively, the assignment could be a directreporting assurance engagement, where there is no
assertion and there may or maynot be a written representation from the newspapers.
In such engagements, when determining whether it is necessary to apply theprovisions in Section 291 to
each responsible party, the firm may take into accountwhether an interest or relationship between the
firm, or a member of the assuranceteam, and a particular responsible party would create a threat to
independence that isnot trivial and inconsequential in the context of the subject matter information. This
will take into account:
(a) The materiality of the subject matter information (or the subject matter) forwhich the particular
responsible party is responsible; and
(b) The degree of public interest that is associated with the engagement.
If the firm determines that the threat to independence created by any suchrelationships with a particular
responsible party would be trivial and inconsequentialit may not be necessary to apply all of the
provisions of this section to thatresponsible party.
110 The following example has been developed to demonstrate the application of Section291. It is assumed
that the client is not also a financial statement audit client of thefirm, or a network firm.
A firm is engaged to provide assurance on the total proven oil reserves of 10independent companies. Each
company has conducted geographical and engineeringsurveys to d...
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This document was uploaded on 04/03/2014.
- Spring '14