| 291.30 | Independence from the assurance client is required both during the engagement period and the period covered by the subject matter information. The engagement period starts when the assurance team begins to perform assurance services with respect to the particular engagement. The engagement period ends when the assurance report is issued. When the engagement is of a recurring nature, it ends at the later of the notification by either party that the professional relationship has terminated or the issuance of the final assurance report. |
| 291.31 | When an entity becomes an assurance client during or after the period covered by the subject matter information on which the firm will express a conclusion, the firm shall determine whether any threats to independence are created by: |
| (a) | Financial or business relationships with the assurance client during or after the period covered by the subject matter information but before accepting the assurance engagement; or |
| (b) | Previous services provided to the assurance client. |
| 291.32 | If a non-assurance service was provided to the assurance client during or after the period covered by the subject matter information but before the assurance team begins to perform assurance services and the service would not be permitted during the period of the assurance engagement, the firm shall evaluate any threat to independence created by the service. If any threat is not at an acceptable level, the assurance engagement shall only be accepted if safeguards are applied to eliminate any threats or reduce them to an acceptable level. Examples of such safeguards include: |
| • | Not including personnel who provided the non-assurance service as members of the assurance team; |
| • | Having a registered auditor review the assurance and non-assurance work as appropriate; or |
| • | Engaging another firm to evaluate the results of the non-assurance service or having another firm re-perform the non-assurance service to the extent necessary to enable it to take responsibility for the service. |
However, if the non-assurance service has not been completed and it is not practical to complete or terminate the service before the commencement of professional services in connection with the assurance engagement, the firm shall only accept the assurance engagement if it is satisfied:
| (a) | The non-assurance service will be completed within a short period of time; or |
| (b) | The client has arrangements in place to transition the service to another provider within a short period of time. |
During the service period, safeguards shall be applied when necessary. In addition, the matter shall be discussed with those charged with governance.
