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Unformatted text preview: , it may not
be necessary to apply all of the provisions of this section to that responsible party. Documentation
291.29 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
(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
291.30 Independence from the assurance client is required both during the engagement period and the
period covered by the subject matter information. The engagement period starts when the
assurance team begins to perform assurance services with respect to the particular engagement.
The engagement period ends when the assurance 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 assurance report. 291.31 When an entity becomes an assurance client during or after the period covered by the subject
matter information on which the firm will express a conclusion, the firm shall determine
whether any threats to independence are created by:
(a) Financial or business relationships with the assurance client during or after the period
covered by the subject matter information but before accepting the assurance engagement;
(b) Previous services provided to the assurance client. 291.32 If a non-ass...
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This document was uploaded on 04/03/2014.
- Spring '14