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Unformatted text preview: uards and engagement-specific safeguards.
200.12 Examples of firm-wide safeguards in the work environment include:
• Leadership of the firm that stresses the importance of compliance with the fundamental
principles. • Leadership of the firm that establishes the expectation that members of an assurance team
will act in the public interest. • Policies and procedures to implement and monitor quality control of engagements. 28 • Documented policies regarding the need to identify threats to compliance with the
fundamental principles, evaluate the significance of those threats, and apply safeguards to
eliminate or reduce the threats to an acceptable level or, when appropriate safeguards are not
available or cannot be applied, terminate or decline the relevant engagement. • Documented internal policies and procedures requiring compliance with the fundamental
principles. • Policies and procedures that will enable the identification of interests or relationships
between the firm or members of engagement teams and clients. • Policies and procedures to monitor and, if necessary, manage the reliance on revenue
received from a single client. • Using different partners and engagement teams with separate reporting lines for the provision
of non-assurance services to an assurance client. • Policies and procedures to prohibit individuals who are not members of an engagement team
from inappropriately influencing the outcome of the engagement. • Timely communication of a firm’s policies and procedures, including any changes to them, to
all partners and professional staff, and appropriate training and education on such policies
and procedures. • Designating a member of senior management to be responsible for overseeing the adequate
functioning of the firm’s quality control system. • Advising partners and professional staff of assurance clients and related entities from which
independence is required. • A disciplinary mechanism to promote compliance with policies and procedures. • Published polic...
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This document was uploaded on 04/03/2014.
- Spring '14