C-26, r. 28 - Code of ethics of certified management accountants

Section 34.8 Disposition versions

2012-09-01

34.8. A member who is required to comply with the independence rule provided for in section 34.2 shall, in respect of the particular engagement, identify threats to independence, evaluate the significance of those threats and, if the threats are other than clearly insignificant, identify and apply measures to reduce or eliminate them.

The member shall document the decision to accept or continue the particular engagement. The documentation shall include the following information:

(1)  a description of the nature of the engagement;

(2)  the threats identified;

(3)  the measures identified and applied to reduce or eliminate the threats; and

(4)  an explanation of how the measures reduce or eliminate the threats.

Where the threats cannot be reduced, the member shall:

(1)  eliminate the activity, relationship, influence or interest creating the threats; or

(2)  refuse to accept or continue the engagement.

O.C. 406-2010, s. 3.