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are deemed not to be a management responsibility.For example, executing an insignificant
transaction that has been authorizedby management or monitoring the dates for filing statutory
returns andadvising an assurance client of those dates is deemed not to be amanagement
responsibility. Further, providing advice and recommendationsto assist management in
discharging its responsibilities is not assuming amanagement responsibility.
291.146 Assuming a management responsibility for an assurance client may createthreats to
independence. If a firm were to assume a managementresponsibility as part of the assurance
service, the threats created would beso significant that no safeguards could reduce the threats to
an acceptablelevel. Accordingly, in providing assurance services to an assurance client, afirm
shall not assume a management responsibility as part of the assuranceservice. If the firm
assumes a management responsibility as part of anyother services provided to the assurance
client, it shall ensure that theresponsibility is not related to the subject matter and subject
matterinformation of an assurance engagement provided by the firm.
291.147 To avoid the risk of assuming a management responsibility related to thesubject matter or
subject matter information of the assurance engagement,the firm shall be satisfied that a
member of management is responsible formaking the significant judgments and decisions that
are the properresponsibility of management, evaluating the results of the service andaccepting
responsibility for the actions to be taken arising from the resultsof the service. This reduces the
risk of the firm inadvertently making anysignificant judgments or decisions on behalf of
management. This risk isfurther reduced when the firm gives the client the opportunity to make
judgments and decisions based on an objective and transparent analysis andpresentation of the
291.148 Threats to independence may be created when a firm provides a non-assuranceservice related to
the subject matter information of an assuranceengagement. In such cases, an evaluation of the
significance of the firm’sinvolvement...
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This document was uploaded on 04/03/2014.
- Spring '14