Independence Guide - Institute Of Public Accountants
Joint Accounting BodiesCPA Australia Ltd, The Institute of Chartered Accountants in Australia & The Institute of Public AccountantsIndependence guideFourth edition, February 2013
The Joint Accounting BodiesThe major professional accounting bodies in Australia established the Joint Accounting Bodies to speak with a united voice togovernment bodies, standard setters and regulators on non-competitive matters affecting the profession. The members of the JointAccounting Bodies are:CPA Australia is one of the world’slargest accounting and finance bodies,representing over 144,000 accountingand business professionals globally.Our aim is to enhance our members’professional knowledge and supporttheir career development. We do this inmany ways, starting with the worldclass postgraduate CPA Program,recognised internationally as abenchmark of quality and employability.Thereafter, we deliver a range ofcontinuous learning programs, utilisingour international networks to sourceleading-edge content and presenters.What sets us apart from other similarbodies is our focus on strategy,leadership and international business.CPA Australia is the global professionalaccountancy designation for strategicbusiness leaders.We support our members and theprofession internationally by advocatingfor change at the highest levels andcontributing to leading networksworldwide in the finance, accountingand business arenas.A strategic priority and commitment forCPA Australia is to not only advocate onbehalf of members, but also to speakup on economic and political issues inthe public interest.CPA Australia’s members are bound bya strict professional code of conduct,including an obligation to undertakecontinuous professional developmentto ensure that the highest professionalstandards are maintained.Our commitment to excellence, integrityand innovative thinking means thatCPAs will remain at the forefront ofbusiness and public service now andin generations to come. For furtherinformation about CPA Australia visitwww.cpaaustralia.com.au2The Institute of Chartered Accountantsin Australia (the Institute) is theprofessional body for CharteredAccountants in Australia and membersoperating throughout the world.Representing more than 72,000 currentand future professionals and businessleaders, the Institute has a pivotalrole in upholding financial integrity insociety. Members strive to uphold theprofession’s commitment to ethics andquality in everything they do, alongsidean unwavering dedication to act in thepublic interest.Chartered Accountants hold diversepositions across the businesscommunity, as well as in professionalservices, government, not-forprofit, education and academia. Theleadership and business acumenof members underpin the Institute’sdeep knowledge base in a broadrange of policy areas impacting theAustralian economy and domestic andinternational capital markets.The Institute was established by RoyalCharter in 1928 and today has morethan 60,000 members and 12,000talented graduates working andundertaking the Chartered AccountantsProgram.The Institute is a founding memberof the Global Accounting Alliance(GAA), which is an internationalcoalition of accounting bodies andan 800,000-strong network ofprofessionals and leaders worldwide.For more information about the Institutevisit charteredaccountants.com.auThe Institute of Public Accountants,established in 1923, provides guidanceand insight into long-term futureplanning for its 22,000 members andstudents in Australia and more than 50countries worldwide, as well as qualityeducation and career progressionpathways for members and graduatesthroughout Australia.IPA members must meet prescribedstandards of education, including theIPA Program leading to the degree ofMasters of Commerce (ProfessionalAccounting) and experience whilst atthe same time displaying the highestethical and professional standards.The IPA provides expert representationas well as the crucial technical toolsand business support members require.The IPA also provides members withan ongoing program of professionaldevelopment and a host of social andbusiness networking opportunities andonline discussion forums.IPA members benefit from theorganisation’s strong alliancesand leadership reaching to theinternational and national businesssectors, Australian State and FederalGovernments and the wider public andprivate sectors.Through these networks the IPAprovides ‘thought leadership’ inaddressing issues affecting accounting.As a full member of the InternationalFederation of Accountants (IFAC), theIPA is well positioned in its work withnational and international standardsetters to ensure members are fullyrepresented and fully informed.For further information about the IPAvisit www.publicaccountants.org.auIndependence guide
AcknowledgementsProfessor Nonna Martinov-BenniePhD, MCom (Hons) UNSW, BBus UTS, BA Tas, FCA, FCPADirector of International Governance and Performance (IGAP)Research CentreFaculty of Business and EconomicsMacquarie UniversityProfessor Philomena LeungPhD, MACC, FCPA, CA, FCCAHead of Department of Accounting and Corporate GovernanceFaculty of Business and EconomicsMacquarie UniversityDisclaimerCopyright 2013 CPA Australia Ltd (ABN 64 008 392 452), the Institute ofChartered Accountants in Australia (ABN 50 084 642 571) and the Instituteof Public Accountants (ABN 81 004 130 643) (‘joint owners’). All rightsreserved. Save and except for third party content, all content in this productis owned or licensed by the joint owners. All trade marks and trade namesare proprietary to the joint owners and must not be downloaded, reproducedor otherwise used without the express consent of the joint owners.1. You may access and display pages from the website or CD-ROM on yourcomputer, monitor or other video display device, and make one printedcopy of any whole page or pages for your personal use only2. You may download from the website or CD-ROM, and reproduce, modify,alter or adapt the provided sample inter-firm independence declarationand use them so reproduced, modified or adapted for your personal useand/or in your practice.Other than for the purposes of and subject to the conditions prescribedunder the Copyright Act 1968 (Cwlth) (or any other applicable legislationthroughout the world), or as otherwise provided for herein, no part ofthis product may in any manner or any medium whether now existing orcreated in the future (including but not limited to electronic, mechanical,microcopying, photocopying or recording), be reproduced, adapted,stored in a retrieval system or transmitted without the prior writtenpermission of the copyright owner.Except as expressly permitted herein, you may not (i) sublicense, lease,rent, distribute, or otherwise transfer the CD-ROM; or (ii) transmit, broadcast,make available on the internet or otherwise perform or display the CD-ROMin public, in whole or in part.Independence guideThe joint owners have used reasonable care and skill in compiling thecontent of this product. However, the joint owners make no warranty as tothe accuracy or completeness of any information in this product, and noresponsibility is taken for any action(s) taken on the basis of any informationcontained herein, whether in whole or in part, nor for any errors or omissionsin that information.No part of this product is intended to be advice, whether legal or professional.You should not act solely on the basis of the information contained in theproduct as parts may be generalised and may apply differently to differentpeople and circumstances. Further, as laws change frequently, all users areadvised to undertake their own research or to seek professional advice tokeep abreast of any reforms and developments in the law.Except to the extent that the joint owners have expressly warrantedin writing as to its compatibility, you shall have sole responsibility fordetermining the compatibility of this product with your equipment, softwareand products not supplied by the joint owners, and you shall have the soleresponsibility for installation of any product on your systems.The joint owners, their employees, agents and consultants exclude allliability for any loss or damage claims and expenses including but not limitedto legal costs, indirect special or consequential loss or damage (includingbut not limited to, negligence) arising out of the information in the materials.Where any law prohibits the exclusion of such liability, each of the jointowners limits their liability to the re-supply of the information.3
Table of contentsForeword. 71.Purpose of the guide. 81.1Background. 81.2Key changes. 81.3Acronyms used throughout the guide. 102.Fundamental principles. 113.Assurance engagements. 123.1Overview. 123.2Classification. 124.Conceptual framework. 154.1Overview. 154.2Step 1 – Identify threats. 154.3Step 2 – Evaluate significance of threats. 154.4Step 3 – Apply safeguards. 164.5Responsibility. 174.6Documentation. 174.7‘Small firms’ and ‘small clients’. 184.8Case study – Application of the conceptual framework. 195.Public interest entities. 205.1Overview. 205.2Effective date. 205.3Definition. 205.4Responsibility. 206.Networks. 216.1Overview. 216.2Definitions. 216.3Responsibility. 216.4Examples. 227.Examples of independence issues. 267.1Overview. 267.2Effect of classification as a public interest entity. 267.3Examples. 267.3.1‘The books’ are prepared by the auditor. 267.3.2Services previously allowed for a public interest entity. 297.3.3Accounting advice. 297.3.4Director or officer. 307.3.5Accounts with financial institutions. 307.3.6Loyalty scheme. 327.3.7Insurance claim. 337.3.8Ten hour ‘maximum hours test’. 33
7.3.9Tax services. 347.3.10 Corporate finance services. 377.3.11 Valuation services. 377.3.12 Fees. 387.3.13 Contractor/consultant. 397.3.14 Former partner joins audit client. 397.3.15 Power of attorney/executor. 407.3.16 Other assurance engagement. 408.Special consideration: Rotation requirements. 418.1Overview. 418.2Effective date. 428.3Transitional arrangements. 428.4Audit enhancement. 428.5Application. 438.6Responsibility. 448.7Examples. 448.7.1Key audit partner for a listed entity. 448.7.2Key audit partner for a non-listed public interest entity. 458.7.3Entity becomes a public interest entity. 478.7.4Opting out. 478.7.5Year-end and prior periods. 489.Special consideration: Self-managed superannuation funds. 499.1Overview. 499.2Superannuation funds as public interest entities. 499.3Self-managed superannuation funds (SMSFs). 499.4Examples. 509.4.1‘The books’ are prepared by the auditor.
2 Independence guide The Joint Accounting Bodies The major professional accounting bodies in Australia established the Joint Accounting Bodies to speak with a united voice to government bodies, standard setters and regulators on non-competitive matters affecting the profession. The members of
Professional Ethics Division: Plain English guide to independence Purpose of this guide The purpose of the AICPA Plain English guide to independence is to help you understand independence requirements under the AICPA Code of Professional Conduct (the code) and, if applicable, other rulemaking and standard-setting bodies. Independence generally
Quiz on the Declaration of Independence 1. The Continental Congress voted for the Declaration of Independence on July 4, 1776. 2. The Declaration of Independence declared the independence of the United States from what nation? 3. The Declaration of Independence was signed by 56 members of the Continental Congress on July 4, 1776. 4.
Brochure Independence Dental PPO 0917 1 Underwritten by Independence American Insurance Company, (IAIC), a member of the IHC Group, an insurance organization composed of Independence Holding Company (NYSE: IHC) and its operating subsidiaries. For more information about IAIC and the IHC Group, visit www.ihcgroup.com. The Independence Dental plan
The Declaration of Independence: The Words Heard Around the World No American document has had a bigger global impact than the Declaration of Independence. By DAVID ARMITAGE, July 3, 2014, The Wall Street Journal The Declaration of Independence is the birth certificate of the
independence is not an end in itself but merely a means to an end.11 As Colleen Cox 6 Rodney Smolla, Chief Justice Harry L. Carrico and The Ideal of Judicial Independence, The University of Richmond Law Review vol 38 no 3 p571 (March 2004). 7. Rodney Smolla, Chief Justice Harry L. Carrico and The Ideal of Judicial Independence, the University
Brochure Independence Dental Indemnity 0917 1 Underwritten by Independence American Insurance Company, (IAIC), a member of the IHC Group, an insurance organization composed of Independence Holding Company (NYSE: IHC) and its operating subsidiaries. For more information about IAIC and the IHC Group, visit www.ihcgroup.com.
The independence of CPAsis an integral part of the framework of the profession - requirements relate to everything a CPA does - business and employment relationships as well as the services delivered to clients. Independence in fact and appearance relates to the integrity and objectivity of the auditor. 4 Independence in Fact
Declaration of Independence. He wrote a passionate argument with reasons why the United States should seek independence from Great Britain. Roger Sherman: Jefferson, you made a great choice to divide the document into four parts. I especially like the Preamble where you've explained why we've created this Declaration of Independence.
