CPDStore Ireland

Independence of the professional accountant, the firm, as well as any network firm is vital in its forms of perceived independence and independence of mind. We have started to discuss independence, but it is a lengthy subject and requires time to work through.

In this course Ulrich Schackerman covers the following topics:

• Independence in Relation to Mergers and Acquisitions
• Breach of Independence Provisions for audit and review engagements
• Fees – aspects that affect independence.

During merger and acquisitions independence of the firm, a network firm or members of an engagement team may be affected by circumstances arising from the merger or acquisition. This may have an influence on the assessment of the independence of those entities and individuals concerned and it is necessary to re-evaluate the independence of any of them. 

Of course, during the performance of professional activities circumstances may change the previous assessment of independence of the team, the firm and the network firm may no longer be given. We will learn what needs to be done under such circumstances, who needs to be informed and how to address any consequences that may have arisen.

Of course, fees are a very important aspect of professional services. They need to be sufficient in order to ensure the continued operation of the firm, but they also need to be competitive in order to gain new work and new clients. The level of fees might create a self-interest threat, or an intimidation threat to independence and firm are required to comply with the independence requirements of the Code. The outcome will be that these threats can be addressed effectively and compliance with the code can be assured.