Custody of

Client Assets
Section 270
Should not assume custody
unless permitted by law
Accountant in Public Practice entrusted
with assets should:

• Keep assets separately

• Use only for intended purpose
• ALWAYS be ready to account
• Comply
Objectivity –
All Services
Section 280
Consider when there are
threats
Assurance provider should
be independent from
assurance client
Evaluate threats. If significant,
safeguards should be considered:

• Withdraw from the engagement

team
• Supervisory procedures
Evaluate threats. If significant,
safeguards should be considered:

• Terminating financial/business
relationship giving rise to the
threat
• Discuss issue with higher-level
management
Evaluate threats. If significant,
safeguards should be considered:

• Discuss issue with higher-level

management
Independence
– Assurance
Engagements
Section 290
Objective and Structure of this Section:
• Identifying threats to
independence
• Evaluating whether these threats
are significant
• Identifying and applying
appropriate safeguards to reduce
threats to an acceptable level
Assurance teams should be
independent from assurance
clients

Assurance engagements
- enhance degree of
confidence for the
intended users
 Assurance Engagements

Assertion- Direct
based Reporting

Accountant in Responsible Intended

Public Practice Party Users
 Assertion-based

Includes Financial Statement

Audit Engagement
Performed by the responsible
party
 Direct Reporting

Public accountant directly

performs the evaluation
Information is provided to the
end users in the assurance
report
INDEPENDENCE requires:

• Independence of Mind
• Independence of Appearance
Professional Resources include:

• Common systems
• Partners & staff
• Technical departments
• Audit methodology
• Training courses and facilities
 Period of the engagement

START END
begins Issuance of
performance assurance
of assurance report
services