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the professional accountant in public practice can decide whether it would be appropriate to
accept the engagement. For example, the apparent reasons for the change in appointment may not
fully reflect the facts and may indicate disagreements with the existing accountant that may
influence the decision to accept the appointment.
210.11 Safeguards shall be applied when necessary to eliminate any threats or reduce them to an
acceptable level. Examples of such safeguards include:
• When replying to requests to submit tenders, stating in the tender that, before accepting the
engagement, contact with the existing accountant will be requested so that inquiries may be
made as to whether there are any professional or other reasons why the appointment should
not be accepted; • Asking the existing accountant to provide known information on any facts or circumstances
that, in the existing accountant’s opinion, the proposed accountant needs to be aware of
before deciding whether to accept the engagement; or • Obtaining necessary information from other sources. When the threats cannot be eliminated
or reduced to an acceptable level through the application of safeguards, a professional
accountant in public practice shall, unless there is satisfaction as to necessary facts by other
means, decline the engagement. 210.12 A professional accountant in public practice may be asked to undertake work that is
complementary or additional to the work of the existing accountant. Such circumstances may
create threats to professional competence and due care resulting from, for example, a lack of or
incomplete information. The significance of any threats shall be evaluated and safeguards applied
when necessary to eliminate the threat or reduce it to an acceptable level. An example of such a
safeguard is notifying the existing accountant of the proposed work, which would give the
existing accountant the opportunity to provide any relevant information needed for the proper
conduct of the work.
210.13 An existing accountant is bound by confidentiality. Whether that professional accountant is
permitted or required to discuss the affairs of a client with a proposed accountant will depend on
the nature of the engagement and on:
(a) Whether the client’s permission to do so has been obtained; or
(b) The legal or e...
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This document was uploaded on 04/03/2014.
- Spring '14