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Unformatted text preview: too significant to permit such services unless appropriate safeguards
are put in place ensuring that:
(a) The client acknowledges its responsibility for establishing and monitoring a system of
internal controls; (b) The client assigns the responsibility to make all management decisions with respect to the
design and implementation of the hardware or software system to a competent employee,
preferably within senior management; (c) The client makes all management decisions with respect to the design and
implementation process; (d) The client evaluates the adequacy and results of the design and implementation of the
system; and (e) The client is responsible for operating the system (hardware or software) and for the data
it uses or generates. 290.205 Depending on the degree of reliance that will be placed on the particular IT systems as part of
the audit, a determination shall be made as to whether to provide such non-assurance services
only with personnel who are not members of the audit team and who have different reporting
lines within the firm. The significance of any remaining threat shall be evaluated and
safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. An
example of such a safeguard is having a professional accountant review the audit or nonassurance work.
Audit clients that are public interest entities
290.206 In the case of an audit client that is a public interest entity, a firm shall not provide services
involving the design or implementation of IT systems that
(a) form a significant part of the internal control over financial reporting or (b) generate information that is significant to the client’s accounting records or financial
statements on which the firm will express an opinion.
197 Litigation Support Services
290.207 Litigation support services may include activities such as acting as an expert witness,
calculating estimated damages or other amounts that might become receivable or payable as the
result of litigation or other legal dispute, and assistanc...
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- Spring '14