This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ular non-assurance
service, consideration shall be given to any threat that the audit team has reason to believe is
created by providing other related non-assurance services. If a threat is created that cannot be
reduced to an acceptable level by the application of safeguards, the non-assurance service shall
not be provided.
290.159 Providing certain non-assurance services to an audit client may create a threat to independence
so significant that no safeguards could reduce the threat to an acceptable level. However, the
inadvertent provision of such a service to a related entity, division or in respect of a discrete
financial statement item of such a client will be deemed not to compromise independence if any
threats have been reduced to an acceptable level by arrangements for that related entity,
division or discrete financial statement item to be audited by another firm or when another firm
re-performs the non-assurance service to the extent necessary to enable it to take responsibility
for that service.
290.160 A firm may provide non-assurance services that would otherwise be restricted under this
section to the following related entities of the audit client:
(a) An entity, which is not an audit client, that has direct or indirect control over the audit
client; (b) An entity, which is not an audit client, with a direct financial interest in the client if that
entity has significant influence over the client and the interest in the client is material to
such entity; or (c) An entity, which is not an audit client, that is under common control with the audit client,
if it is reasonable to conclude that (a) the services do not create a selfreview threat
because the results of the services will not be subject to audit procedures and (b) any
threats that are created by the provision of such services are eliminated or reduced to an
acceptable level by the application of safeguards. 290.161 A non-assurance service provided to an audit client does not compromise the firm’s
independence when the client becomes...
View Full Document
This document was uploaded on 04/03/2014.
- Spring '14