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Unformatted text preview: urance service was provided to the assurance client during or after the period
covered by the subject matter information but before the assurance team begins to perform
assurance services and the service would not be permitted during the period of the assurance
engagement, the firm shall evaluate any threat to independence created by the service. If any
214 threat is not at an acceptable level, the assurance engagement shall only be accepted if
safeguards are applied to eliminate any threats or reduce them to an acceptable level. Examples
of such safeguards include:
• Not including personnel who provided the non-assurance service as members of the
assurance team; • Having a professional accountant review the assurance and nonassurance work as
appropriate; or • Engaging another firm to evaluate the results of the non-assurance service or having
another firm re-perform the non-assurance service to the extent necessary to enable it to
take responsibility for the service.
However, if the non-assurance service has not been completed and it is not practical to
complete or terminate the service before the commencement of professional services in
connection with the assurance engagement, the firm shall only accept the assurance
engagement if it is satisfied: (a) The non-assurance service will be completed within a short period of time; or
(b) The client has arrangements in place to transition the service to another provider within a
short period of time.
During the service period, safeguards shall be applied when necessary. In addition, the
matter shall be discussed with those charged with governance. Other Considerations
291.33 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...
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- Spring '14