A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council. Such organizations may have independence requirements or rulings that differ from e. Independence shall be considered to be impaired if: Had a joint closely held investment that was material to the covered member.
Except as specifically permitted in interpretation [ET section During the period covered by the financial statements or during the period of the professional engagement, a firm, or partner or professional employee of the firm was simultaneously associated with the client as a n Director, officer, or employee, or in any capacity equivalent to that of a member of management; Promoter, underwriter, or voting trustee; or Trustee for any pension or profit-sharing trust of the client.
Transition Period for Certain Business and Employment Relationships A business or employment relationship with a client that impairs independence under interpretation C [ET section The exceptions are that independence would not be considered to be impaired solely as a result of the following: In connection with his or her employment, an individual in the immediate family of one of the following covered members participated in a retirement, savings, compensation, or similar plan that is a client, is sponsored by a client, or that invests in a client provided such plan is normally offered to all employees in similar positions: A partner or manager who provides ten or more hours of non-attest services to the client; or Any partner in the office in which the lead attest engagement partner primarily practices in connection with the attest engagement.
For purposes of determining materiality under rule [ET section Application of the Independence Rules to Close Relatives Independence would be considered to be impaired if— An individual participating on the attest engagement team has a close relative who had A key position with the client, or A financial interest in the client that i Was material to the close relative and of which the individual has knowledge; or ii Enabled the close relative to exercise significant influence over the client.
An individual in a position to influence the attest engagement or any partner in the office in which the lead attest engagement partner primarily practices in connection with the attest engagement has a close relative who had A key position with the client; or A financial interest in the client that i Was material to the close relative and of which the individual or partner has knowledge; and i Enabled the close relative to exercise significant influence over the client.
Other Considerations It is impossible to enumerate all circumstances in which the appearance of independence might be questioned.
Revised, Novembereffective January 1,with earlier application encouraged, by the Professional Ethics Executive Committee. Revised, Novembereffective May 31,with earlier application encouraged, by the Professional Ethics Executive Committee.
Formerly interpretationrenumbered as and moved to paragraph. A firm's independence will be considered to be impaired with respect to a client if a partner or professional employee leaves the firm and is subsequently employed by or associated with that client in a key position unless all the following conditions are met: Amounts due to the former partner or professional employee for his or her previous interest in the firm and for unfunded, vested retirement benefits are not material to the firm, and the underlying formula used to calculate the payments remains fixed during the payout period.
Retirement benefits may also be adjusted for inflation and interest may be paid on amounts due. The former partner or professional employee is not in a position to influence the accounting firm's operations or financial policies. The former partner or professional employee does not participate or appear to participate in, and is not associated with the firm, whether or not compensated for such participation or association, once employment or association with the client begins.
An appearance of participation or association results from such actions as: The individual provides consultation to the firm. The firm provides the individual with an office and related amenities for example, secretarial and telephone services.
The individual's name is included in the firm's office directory. The individual's name is included as a member of the firm in other membership lists of business, professional, or civic organizations, unless the individual is clearly designated as retired.
The ongoing attest engagement team considers the appropriateness or necessity of modifying the engagement procedures to adjust for the risk that, by virtue of the former partner or professional employee's prior knowledge of the audit plan, audit effectiveness could be reduced.
The firm assesses whether existing attest engagement team members have the appropriate experience and stature to effectively deal with the former partner or professional employee and his or her work, when that person will have significant interaction with the attest engagement team.
The subsequent attest engagement is reviewed to determine whether the engagement team members maintained the appropriate level of skepticism when evaluating the representations and work of the former partner or professional employee, when the person joins the client in a key position within one year of disassociating from the firm and has significant interaction with the attest engagement team.
The review should be performed by a professional with appropriate stature, expertise, and objectivity and should be tailored based on the position that the person assumed at the client, the position he or she held at the firm, the nature of the services he or she provided to the client, and other relevant facts and circumstances.
Appropriate actions, as deemed necessary, should be taken based on the results of the review. Responsible members within the firm should implement procedures for compliance with the preceding conditions when firm professionals are employed or associated with attest clients.
With respect to conditions 4, 5, and 6, the procedures adopted will depend on several factors, including whether the former partner or professional employee served as a member of the engagement team, the positions he or she held at the firm and has accepted at the client, the length of time that has elapsed since the professional left the firm, and the circumstances of his or her departure.
|Policies and Positions - Association for Behavior Analysis International||A lawyer shall be responsible for a violation of the Disciplinary Rules by another lawyer or for conduct of a non-lawyer employed or retained by or associated with the lawyer that would be a violation of the Disciplinary Rules if engaged in by a lawyer if: The lawyer orders, or directs the specific conduct, or, with knowledge of the specific conduct, ratifies it; or 2.|
|Code of Professional Conduct — International Mediation Institute||Engaging in prohibited conduct while taking the examination is strictly prohibited.|
|Footnotes (ET Section 101 — Independence):||
When a covered member becomes aware that a member of the attest engagement team or an individual in a position to influence the attest engagement is considering employment or association with a client, the covered member should notify an appropriate person in the firm.
The appropriate person should consider what additional procedures may be necessary to provide reasonable assurance that any work performed for the client by that person was performed with objectivity and integrity as required under rule [ET section Additional procedures, such as reperformance of work already done, will depend on the nature of the engagement and the individual involved.
Revised, Julyto reflect conforming changes necessary due to the revision of interpretation CBAP ® Code of Ethical Conduct & Professional Standards. This is a copy of the text for the CBAP ® Code of Conduct.
You must read and agree to this Code of Conduct prior to applying in order to be able to proceed with your application. The Code of Professional Conduct was revised effective December 15, A mapping document is available in Appendix D of the Code to facilitate smooth transition.
Learn more about the Project that resulted in the redesigned Code of Professional Conduct. PMI’s Code of Ethics and Professional Conduct applies those values to the real-life practice of project management, where the best outcome is the most ethical one.
All PMI members, volunteers, certification holders and certification applicants must comply with the Code. The CFA Institute Code of Ethics and Standards of Professional Conduct (Code and Standards) are fundamental to the values of CFA Institute and essential to achieving its mission to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.
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