The individual does not continue to participate or appear to participate in the firm’s or the network firm’s business or professional activities. 5524.4 A1 Even if the requirements of paragraph R5524.4 are met, a familiarity or intimidation threat might still be created. 5524.4 A2 A familiarity or intimidation threat might also be created if a former leader of the firm or network firm has joined an entity in one of the positions described in paragraph 5524.3 A1 and the entity subsequently becomes a sustainability assurance client of the firm. 5524.4 A3 Factors that are relevant in evaluating the level of such threats include: • The position the individual has taken at the client. • Any involvement the individual will have with the sustainability assurance team. • The length of time since the individual was a sustainability assurance team member or leader of the firm or network firm. • The former position of the individual within the sustainability assurance team, firm or network firm. An example is whether the individual was responsible for maintaining regular contact with the client’s management or those charged with governance. 5524.4 A4 Examples of actions that might be safeguards to address such familiarity or intimidation threats include: • Modifying the plan for the sustainability assurance engagement. • Assigning to the sustainability assurance team individuals who have sufficient experience relative to the individual who has joined the client. • Having an appropriate reviewer review the work of the former sustainability assurance team member. Sustainability Assurance Team Members Entering Employment with a Client R5524.5 A firm or network firm shall have policies and procedures that require sustainability assurance team members to notify the firm or network firm when entering employment negotiations with a sustainability assurance client. 5524.5 A1 A self-interest threat is created when a sustainability assurance team member participates in the sustainability assurance engagement while knowing that the sustainability assurance team member will, or might, join the client at some time in the future. 5524.5 A2 An example of an action that might eliminate such a self- interest threat is removing the individual from the sustainability assurance team. 5524.5 A3 An example of an action that might be a safeguard to address such a self-interest threat is having an appropriate reviewer review any significant judgments made by that individual while on the team.
Sustainability Assurance Clients that are Public Interest Entities
Key Sustainability Assurance Leaders
Subject to paragraph R5524.8, if an individual who was a key sustainability assurance leader with respect to a sustainability assurance client that is a public interest entity joins the client as:
