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Unformatted text preview: f the threats shall be evaluated and safeguards applied when necessary to
eliminate the threats or reduce them to an acceptable level. Examples of such safeguards
• If the litigation involves a member of the assurance team, removing that individual from the
assurance team; or • Having a professional review the work performed. If such safeguards do not reduce the threats to an acceptable level, the only appropriate action is
to withdraw from, or decline, the assurance engagement. Interpretation 2005–01 (Revised July 2009 to conform to changes resulting from the
IESBA’s project to improve the clarity of the Code)
Application of Section 291 to Assurance Engagements that are Not Financial Statement Audit
This interpretation provides guidance on the application of the independence requirements contained in
Section 291 to assurance engagements that are not financial statement audit engagements.
This interpretation focuses on the application issues that are particular to assurance engagements that are
not financial statement audit engagements. There are other matters noted in Section 291 that are relevant
in the consideration of independence requirements for all assurance engagements. For example, paragraph
291.3 states that an evaluation shall be made of any threats the firm has reason to believe are created by a
network firm’s interests and relationships. It also states that when the assurance team has reason to
believe that a related entity of such an assurance client is relevant to the evaluation of the firm’s
independence of the client, the assurance team shall include the related entity when evaluating threats to
independence and when necessary applying safeguards. These matters are not specifically addressed in
As explained in the International Framework for Assurance Engagements issued by the International
Auditing and Assurance Standards Board, in an assurance engagement, the professional accountant in
public practice expresses a conclusion designed to enhance the degree of confidence of the intended users
other than the responsible party about the outcome of the evaluation or measurement of a subject matter...
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- Spring '14