Unformatted text preview: the individual isnot material to the
102 • Modifying the plan for the assurance engagement; • Assigning individuals to the assurance team who have sufficientexperience in relation to
the individual who has joined the client; or • Having a professional accountant review the work of the formermember of the assurance
team. 291.130 If a former partner of the firm has previously joined an entity in such aposition and the entity
subsequently becomes an assurance client of thefirm, the significance of any threats to
independence shall be evaluated andsafeguards applied when necessary, to eliminate the threat
or reduce it to anacceptable level.
291.131 A self-interest threat is created when a member of the assurance teamparticipates in the
assurance engagement while knowing that the member ofthe assurance team will, or may, join
the client sometime in the future.Firm policies and procedures shall require members of an
assurance team tonotify the firm when entering employment negotiations with the client.
Onreceiving such notification, the significance of the threat shall be evaluatedand safeguards
applied when necessary to eliminate the threat or reduce it toan acceptable level. Examples of
such safeguards include:
• Removing the individual from the assurance team; or • A review of any significant judgments made by that individual whileon the team. Recent Service with an Assurance Client
291.132 Self-interest, self-review or familiarity threats may be created if a memberof the assurance team
has recently served as a director, officer, or employeeof the assurance client. This would be the
case when, for example, amember of the assurance team has to evaluate elements of the subject
matterinformation the member of the assurance team had prepared while with theclient.
291.133 If, during the period covered by the assurance report, a member of theassurance team had
served as director or officer of the assurance client, orwas an employee in a position to exert
significant influence over the sub...
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This document was uploaded on 04/03/2014.
- Spring '14