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The Independence requirements in this section that apply to a Network Firm apply to any entity, such as a consulting practice or professional law practice, that meets the definition of a Network Firm irrespective of whether the entity itself meets the definition of a Firm.
290.14 To enhance their ability to provide Professional Services, Firms frequently form larger structures with other Firms and entities. Whether these larger structures create a Network depends on the particular facts and circumstances and does not depend on whether the Firms and entities are legally separate and distinct. For example, a larger structure may be aimed only at facilitating the referral of work, which in itself does not meet the criteria necessary to constitute a Network. Alternatively, a larger structure might be such that it is aimed at co-operation and the Firms share a common brand name, a common system of quality control, or significant professional resources and consequently is deemed to be a Network.
290.15 The judgment as to whether the larger structure is a Network shall be made in …show more content…
290.114 The holding by a Firm, or a member of the Audit Team, or a member of that individual‘s Immediate Family, of a Direct Financial Interest or a material Indirect
Financial Interest in the Audit Client as a trustee creates a self-interest threat.
Similarly, a self-interest threat is created when (a) a partner in the Office in which the lead Engagement Partner practices in connection with the audit, (b) other partners and managerial employees who provide non-assurance services to the
Audit Client, except those whose involvement is minimal, or (c) their Immediate
Family members, hold a Direct Financial Interest or a material Indirect Financial
Interest in the Audit Client as trustee. Such an interest shall not be held unless:
(a)
Neither the trustee, nor an Immediate Family member of the trustee, nor the
Firm are beneficiaries of the trust;
(b)
The interest in the Audit Client held by the trust is not material to the trust;
(c)
The trust is not able to exercise significant influence over the Audit
290.14 To enhance their ability to provide Professional Services, Firms frequently form larger structures with other Firms and entities. Whether these larger structures create a Network depends on the particular facts and circumstances and does not depend on whether the Firms and entities are legally separate and distinct. For example, a larger structure may be aimed only at facilitating the referral of work, which in itself does not meet the criteria necessary to constitute a Network. Alternatively, a larger structure might be such that it is aimed at co-operation and the Firms share a common brand name, a common system of quality control, or significant professional resources and consequently is deemed to be a Network.
290.15 The judgment as to whether the larger structure is a Network shall be made in …show more content…
290.114 The holding by a Firm, or a member of the Audit Team, or a member of that individual‘s Immediate Family, of a Direct Financial Interest or a material Indirect
Financial Interest in the Audit Client as a trustee creates a self-interest threat.
Similarly, a self-interest threat is created when (a) a partner in the Office in which the lead Engagement Partner practices in connection with the audit, (b) other partners and managerial employees who provide non-assurance services to the
Audit Client, except those whose involvement is minimal, or (c) their Immediate
Family members, hold a Direct Financial Interest or a material Indirect Financial
Interest in the Audit Client as trustee. Such an interest shall not be held unless:
(a)
Neither the trustee, nor an Immediate Family member of the trustee, nor the
Firm are beneficiaries of the trust;
(b)
The interest in the Audit Client held by the trust is not material to the trust;
(c)
The trust is not able to exercise significant influence over the Audit