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Unformatted text preview: efore the client becomes a public interest entity
shall be taken into account in determining the timing of the rotation. If the individual has served
the audit client as a key audit partner for five years or less when the client becomes a public
interest entity, the number of years the individual may continue to serve the client in that
capacity before rotating off the engagement is seven years less the number of years already
served. If the individual has served the audit client as a key audit partner for six or more years
when the client becomes a public interest entity, the partner may continue to serve in that
capacity for a maximum of two additional years before rotating off the engagement. 290.155
When a firm has only a few people with the necessary knowledge and experience to serve as a
key audit partner on the audit of a public interest entity, rotation of key audit partners may not
be an available safeguard. If an independent regulator in the relevant jurisdiction has provided
an exemption from partner rotation in such circumstances, an individual may remain a key
audit partner for more than seven years, in accordance with such regulation, provided that the
independent regulator has specified alternative safeguards which are applied, such as a regular
independent external review. Provision of Non-assurance Services to Audit Clients
290.156 Firms have traditionally provided to their audit clients a range of nonassurance services that are
consistent with their skills and expertise. Providing non-assurance services may, however,
create threats to the independence of the firm or members of the audit team. The threats created
are most often self-review, self-interest and advocacy threats.
290.157 New developments in business, the evolution of financial markets and changes in information
technology make it impossible to draw up an allinclusive list of non-assurance services that
might be provided to an audit client. When specific guidance on a particular non-assurance
service is not included in this section, the conceptual framework shall be applied when
evaluating the particular circumstances. 184 290.158 Before the firm accepts an engagement to provide a non-assurance service to an audit client, a
determination shall be made as to whether providing such a service would create a threat to
independence. In evaluating the significance of any threat created by a partic...
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This document was uploaded on 04/03/2014.
- Spring '14