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Unformatted text preview: or partner
of the firm.
291.129 If a former member of the assurance team or partner of the firm has joined the assurance client
in such a position, the existence and significance of any familiarity or intimidation threats will
depend on factors such as:
• The position the individual has taken at the client; • Any involvement the individual will have with the assurance team; • The length of time since the individual was a member of the assurance team or partner of
the firm; and • The former position of the individual within the assurance team or firm, for example,
whether the individual was responsible for maintaining regular contact with the client’s
management or those charged with governance. In all cases the individual shall not continue to participate in the firm’s business or professional
The significance of any threats created shall be evaluated and safeguards applied when
necessary to eliminate the threats or reduce them to an acceptable level. Examples of such
• Making arrangements such that the individual is not entitled to any benefits or payments
from the firm, unless made in accordance with fixed pre-determined arrangements.
223 • Making arrangements such that any amount owed to the individual is not material to the
firm; • Modifying the plan for the assurance engagement; • Assigning individuals to the assurance team who have sufficient experience in relation to
the individual who has joined the client; or • Having a professional accountant review the work of the former member of the assurance
team. 291.130 If a former partner of the firm has previously joined an entity in such a position and the entity
subsequently becomes an assurance client of the firm, the significance of any threats to
independence shall be evaluated and safeguards applied when necessary, to eliminate the threat
or reduce it to an acceptable level.
291.131 A self-interest threat is created when a member of the assurance team participates in the
assurance engagement while knowing t...
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- Spring '14