This preview shows page 1. Sign up to view the full content.
Unformatted text preview: te expertise who is nota member of the audit team to review the tax
calculations; or • Obtaining advice on the service from an external tax professional. Audit clients that are public interest entities
290.185 Except in emergency situations, in the case of an audit client that is a publicinterest entity, a
firm shall not prepare tax calculations of current anddeferred tax liabilities (or assets) for the
purpose of preparing accountingentries that are material to the financial statements on which
the firm willexpress an opinion.
290.186 The preparation of calculations of current and deferred tax liabilities (orassets) for an audit
client for the purpose of the preparation of accountingentries, which would otherwise not be
permitted under this section, may beprovided to audit clients in emergency or other unusual
situations when it isimpractical for the audit client to make other arrangements. This may be
thecase when (a) only the firm has the resources and necessary knowledge ofthe client’s
business to assist the client in the timely preparation of itscalculations of current and deferred
tax liabilities (or assets), and (b) arestriction on the firm’s ability to provide the services would
result insignificant difficulties for the client (for example, as might result from afailure to meet
regulatory reporting requirements). In such situations, thefollowing conditions shall be met:
(a) Those who provide the services are not members of the audit team; (b) The services are provided for only a short period of time and are notexpected to recur;
70 (c) The situation is discussed with those charged with governance. Tax Planning and Other Tax Advisory Services
290.187 Tax planning or other tax advisory services comprise a broad range of services,such as advising
the client how to structure its affairs in a tax efficient manneror advising on the application of a
new tax law or regulation.
290.188 A self-review threat may be created where the advice will affect matters tobe reflected in the
View Full Document
This document was uploaded on 04/03/2014.
- Spring '14