Unformatted text preview: n the individual held with the client; • The length of time since the individual left the client; and • The role of the professional on the assurance team. The significance of any threat shall be evaluated and safeguards applied when necessary to
reduce the threat to an acceptable level. An example of such a safeguard is conducting a review
of the work performed by the individual as part of the assurance team. Serving as a Director or Officer of an Assurance Client
291.135 If a partner or employee of the firm serves a director or officer of an assurance client, the selfreview and self-interest threats would be so significant that no safeguards could reduce the
threats to an acceptable level. Accordingly, no partner or employee shall serve as a director or
officer of an assurance client.
291.136 The position of Company Secretary has different implications in different jurisdictions. Duties
may range from administrative duties, such as personnel management and the maintenance of
company records and registers, to duties as diverse as ensuring that the company complies with
regulation or providing advice on corporate governance matters. Generally, this position is seen
to imply a close association with the entity.
291.137 If a partner or employee of the firm serves as Company Secretary for an assurance client, selfreview and advocacy threats are created that would generally be so significant that no
safeguards could reduce the threats to an acceptable level. Despite paragraph 291.135, when
this practice is specifically permitted under local law, professional rules or practice, and
provided management makes all relevant decisions, the duties and activities shall be limited to
those of a routine and administrative nature, such as preparing minutes and maintaining
statutory returns. In those circumstances, the significance of any threats shall be evaluated and
safeguards applied when necessary to eliminate the threats or reduce them to an acceptable
291.138 Performing routine administrative services to support a company secretarial function or
providing advice in relation to company secretarial...
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This document was uploaded on 04/03/2014.
- Spring '14