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Unformatted text preview: usiness strategy
involves an agreement by the entities to achieve common strategic objectives. An entity is not
deemed to be a network firm merely because it co-operates with another entity solely to respond
jointly to a request for a proposal for the provision of a professional service.
290.20 Where the larger structure is aimed at co-operation and the entities within the structure share the
use of a common brand name, it is deemed to be a network. A common brand name includes
common initials or a common name. A firm is deemed to be using a common brand name if it
includes, for example, the common brand name as part of, or along with, its firm name, when a
partner of the firm signs an audit report.
290.21 Even though a firm does not belong to a network and does not use a common brand name as part
of its firm name, it may give the appearance that it belongs to a network if it makes reference in
its stationery or promotional materials to being a member of an association of firms. Accordingly, 164 if care is not taken in how a firm describes such memberships, a perception may be created that
the firm belongs to a network.
290.22 If a firm sells a component of its practice, the sales agreement sometimes provides that, for a
limited period of time, the component may continue to use the name of the firm, or an element of
the name, even though it is no longer connected to the firm. In such circumstances, while the two
entities may be practicing under a common name, the facts are such that they do not belong to a
larger structure aimed at co-operation and are, therefore, not network firms. Those entities shall
determine how to disclose that they are not network firms when presenting themselves to outside
290.23 Where the larger structure is aimed at co-operation and the entities within the structure share a
significant part of professional resources, it is deemed to be a network. Professional resources
• Common systems that enable firms to exchange information such as client data, billing and
time records; • Partners and staff; • Technical departments that consult on technical or...
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- Spring '14