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Unformatted text preview: ted by such interest or relationship and
discussed the evaluation with those charged with governance;
(b) Complies with the requirements of paragraph 290.35(b)–(c); and
47 (c) Ceases to be the auditor no later than the issuance of the audit report.
290.37 When addressing previous and current interests and relationships covered by paragraphs 290.33
to290.36, the firm shall determine whether, even if all the requirements could be met, the interests
and relationships create threats that would remain so significant that objectivity would become
promised and, if so, the firm shall cease to be the auditor.
290.38 The professional accountant shall document any interests or relationships covered by paragraphs
290.34 and 36 that will not be terminated by the effective date of the merger or acquisition and
the reasons why they will not be terminated, the transitional measures applied, the results of the
discussion with those charged with governance, and the rationale as to why the previous and
current interests and relationships do not create threats that would remain so significant that
objectivity would be compromised. Other Considerations
290.39 There may be occasions when there is an inadvertent violation of this section. If such an
inadvertent violation occurs, it generally will be deemed not to compromise independence
provided the firm has appropriate quality control policies and procedures in place, equivalent to
those required by ISQCs, to maintain independence and, once discovered, the violation is
corrected promptly and any necessary safeguards are applied to eliminate any threat or reduce it
to an acceptable level. The firm shall determine whether to discuss the matter with those charged
Paragraphs 290.40 to 290.99 are intentionally left blank. Application of the Conceptual Framework Approach to Independence
290.100 Paragraphs 290.102 to 290.231 describe specific circumstances and relationships that create or
may create threats to independence. The paragraphs describe the potential threats and the types
of safeguards tha...
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- Spring '14