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Unformatted text preview: afeguards, when necessary, to eliminate them or reduce them to an acceptable level. Examples of
such safeguards include:
• • Acquiring knowledge of relevant industries or subject matters. • Possessing or obtaining experience with relevant regulatory or reporting requirements. • Assigning sufficient staff with the necessary competencies. • Using experts where necessary. • Agreeing on a realistic time frame for the performance of the engagement. • 210.8 Acquiring an appropriate understanding of the nature of the client’s business, the complexity
of its operations, the specific requirements of the engagement and the purpose, nature and
scope of the work to be performed. Complying with quality control policies and procedures designed to provide reasonable
assurance that specific engagements are accepted only when they can be performed
competently. When a professional accountant in public practice intends to rely on the advice or work of an
expert, the professional accountant in public practice shall determine whether such reliance is
warranted. Factors to consider include: reputation, expertise, resources available and applicable
professional and ethical standards. Such information may be gained from prior association with
the expert or from consulting others. Changes in a Professional Appointment
210.9 A professional accountant in public practice who is asked to replace another professional
accountant in public practice, or who is considering tendering for an engagement currently held
by another professional accountant in public practice, shall determine whether there are any
reasons, professional or otherwise, for not accepting the engagement, such as circumstances that 153 create threats to compliance with the fundamental principles that cannot be eliminated or reduced
to an acceptable level by the application of safeguards. For example, there may be a threat to
professional competence and due care if a professional accountant in public practice accepts the
engagement before knowing all the pertinent facts.
210.10 A professional accountant in public practice shall evaluate the significance of any threats.
Depending on the nature of the engagement, this may require direct communication with the
existing accountant to establish the facts and circumsta...
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This document was uploaded on 04/03/2014.
- Spring '14