5 The firm assesses whether existing attest engagement team members have the

5 the firm assesses whether existing attest

This preview shows page 19 - 21 out of 43 pages.

5. The firm assesses whether existing attest engagement team members have the appropriate experience and stature to effectively deal with the former partner or professional employee and his or her work, when that person will have sig- nificant interaction with the attest engagement team. 6. The subsequent attest engagement is reviewed to determine whether the engagement team members maintained the appropriate level of skepticism when evaluating the representations and work of the former partner or profes- sional employee, when the person joins the client in a key position within one year of disassociating from the firm and has significant interaction with the attest engagement team. The review should be performed by a professional with appropriate stature, expertise, and objectivity and should be tailored based on the position assumed at the client, the position he or she held at the firm, the nature of the services he or she provided to the client, and other rele- vant facts and circumstances. Appropriate actions, as deemed necessary, should be taken based on the results of the review. A partner or a professional employee merely seeking employment with an audit client may also impair independence. Rule 101-2 states that when a member of the attest engagement team or an individual in a position to influence the attest CHAPTER 3 / PROFESSIONAL ETHICS [ 119 ]
Image of page 19
engagement intends to seek or discuss potential employment or association with an attest client, or is in receipt of a specific offer of employment from an attest client, independence will be impaired with respect to the client unless the person promptly reports such consideration or offer to an appropriate person in the firm, and removes himself or herself from the engagement until the employment offer is rejected or employment is no longer being sought. The purpose of this rule is to avoid situations where a person’s integrity or objectivity might be compromised. If a professional is seeking a job from an audit client, it is important to avoid a sit- uation where the person might be tempted to take an aggressive stance in favor of the client on a matter of professional judgment while seeking the favor of a client by way of a job offer. When a covered member becomes aware that a member of the attest engage- ment team or an individual in a position to influence the attest engagement is considering employment or association with a client, the covered member should notify an appropriate person in the audit firm. Furthermore, the appro- priate person should consider what additional procedures may be necessary to provide reasonable assurance that any work performed for the client by that person was performed with objectivity and integrity as required under Rule 102.
Image of page 20
Image of page 21

You've reached the end of your free preview.

Want to read all 43 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes