Card Set Information
Applying the Conceptual Framework for Independence
Identify threats to Independence that arise from the circumstances.
Consider whether there are safeguards that could reduce/eliminate the threats
If you can't reduce/eliminate the threat, independence is impaired.
Anyone in the firm who must avoid certain financial and business relationships with a client to maintain independence.
Who are covered members?
Anyone on the engagement team
Partner or manager who provides over 10 hours of non-attest services
Partners who practice in the same office as the lead engagement partner
Anyone who evaluates/recommends compensation of the attest partner.
Anyone who supervises the attest partner and everyone above them
Anyone who consults with the engagement
Anyone who participates in quality control for the engagement and anyone above them.
Exceptions to the family member rule
If the covered member is only a covered member because: of the 10 hour rule or the same office rule.