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Unformatted text preview: n, or are widely
accepted and when the techniques andmethodologies to be used are based on generally
accepted standards orprescribed by law or regulation. In such circumstances, the results of
avaluation performed by two or more parties are not likely to be materiallydifferent.
290.178 If a firm is requested to perform a valuation to assist an audit client with itstax reporting
obligations or for tax planning purposes and the results of thevaluation will not have a direct
effect on the financial statements, theprovisions included in paragraph 290.191 apply.
68 Audit clients that are not public interest entities
290.179 In the case of an audit client that is not a public interest entity, if thevaluation service has a
material effect on the financial statements on whichthe firm will express an opinion and the
valuation involves a significantdegree of subjectivity, no safeguards could reduce the selfreview threat toan acceptable level. Accordingly a firm shall not provide such a
valuationservice to an audit client.
Audit clients that are public interest entities
290.180 A firm shall not provide valuation services to an audit client that is a publicinterest entity if the
valuations would have a material effect, separately or inthe aggregate, on the financial
statements on which the firm will express anopinion.
290.181 Taxation services comprise a broad range of services, including:
• Tax return preparation;
• Tax calculations for the purpose of preparing the accounting entries; • Tax planning and other tax advisory services; and • Assistance in the resolution of tax disputes. While taxation services provided by a firm to an audit client are addressedseparately under each
of these broad headings; in practice, these activitiesare often interrelated.
290.182 Performing certain tax services creates self-review and advocacy threats. Theexistence and
significance of any threats will depend on factors such as:
• The system by which the tax authorities assess and administer the taxin...
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- Spring '14