Would the independence of the debtor company be considered compromised? .192 Question: Would the launch of an alternative dispute resolution procedure (ADR) impair independence? .221 Response – If a covered member has control of the entity (as defined in the General Accounting Framework), the existence of a loan on or by the client would impair independence, unless the client`s loan is expressly authorized in accordance with the client`s loan interpretation 101-5 [ET Section 101.07]. .075 Question – A member performs a service function with a client bank in relation to an estate or trust. Would independence with respect to the bank or fiduciary department of the bank be compromised? .140 Question – A member maintains current or savings accounts, certificates of deposit or money market accounts with a client financial institution. Would these deposit-taking relationships undermine independence? The following table summarizes the independence requirements applicable to IDIs: examiners may only apply out-of-court dispute settlement agreements (ADRs) and jury waiver provisions in engagement letters if they do not contain limitation of liability clauses. The provisions must be economically viable and provide a fair and fair trial for all parties, such as. B than neutral decision-makers and appropriate consultation procedures. Accountants should not require their clients to accept ADR. .151 Response – The association of an insured member with a customer credit union would not undermine independence if all the following criteria are met: companies can tackle these possible pitfalls with quality controls that reinforce awareness of the requirements of independence, trigger compliance with simple guidelines and procedures and reward (or discipline) staff for maintaining (or violating) independence standards. Recalls from executives across the company, which emphasize the importance of independence, help ensure that employees apply these requirements with care and diligence.
.222 Question – A member or his or her company provides asset management or investment services that may include asset retention, administrative functions or management decisions for a client-sponsored personnel performance plan (the plan). Would independence with respect to the client plan and sponsor be considered compromised? PCAOB Act 3526 letters of independence. Some auditors do not give the annual APC 3526 Independence Act to the client`s audit committee and discuss the independence required by the PCAOB rules. In Section 363.3 (f), auditors are clearly required to apply the rules of AICPA, SEC and PCAOB, even if the auditor does not have dry audit clients and is not registered with the PCAOB. Yes, for IDIs with a fortune of more than $500 million or more, the more restrictive SEC and PCAOB independence requirements apply, even if the IDI or its holding company is a private company that is not registered with the SEC and does not issue any securities. .209 Response – Independence would not be considered compromised, provided that the member (and other members of his company) is not employed by the client during the audit and does not act or appear to be acting in a function equivalent to that of a member of the client`s management. The decision to implement one of the member`s (or company`s) recommendations must be fully supported by management.