Code of Ethics

Section 400.70 to 76 Mergers and

Jamshaid Akhtar ACA Acquisitions

If entity becomes related entity Terminate interests or
due to merger; relationships not
-identify previous/current permitted under code by
interests/relationships merger acquisition date
-available action to address
-their affect on independence
Factors relevant for evaluation of threat;
-nature/significance of relation
-nature/significance related entity
relationship (e.g. parent/subs.)
-time within which interest/relationship can
be terminated
If TCWG request the firm to continue as
auditor, the firm shall do so only if;
i.terminate interest asap and in all cases
within six months of merger
ii.individual with interest including non-
assurance services not permitted under
600, would not be part of ET or EQCR
iii.transitional measures will be adopted
such as;
+review by CA (audit or non-assurance)
+EQC level review by CA (not part of ET)
+evaluation & re-performance on non-
assurance service by other firm
If firm has completed significant
amount of work prior to merger and
remaining work can be completing
within short period of time
If TCWG request the firm to complete
the audit, it can do so only if it;
-evaluated & discuss significance with
TCWG
-complies with R400.73 a to c
-ceases to be auditor no later than
issues of auditor report.

If cannot reasonably be terminated

-discuss with TCWG reason &
evaluation level

Document;
If meeting all -interest/relationships not terminated
requirement, threat -reason for non termination
cannot be addressed,
Legends; -transitional measures
firm ceases to be
ET: Engagment Team -result of discussion with TCWG
auditor -rationale that interest do not create
EQCR: Engagement Qulaity Control Reviewer
threat to
objectivity