Section 990: Reports That Include a Restriction on Use and Distribution (Assurance Engagements Other Than Audit and Review Engagements) · Complied AI

Section 990Part 4B

Reports That Include a Restriction on Use and Distribution (Assurance Engagements Other Than Audit and Review Engagements)

Introduction

990.1 Firms are required to comply with the fundamental principles, be independent and apply the conceptual framework set out in Section 120 to identify, evaluate and address threats to independence. 990.2 This section sets out certain modifications to Part 4B which are permitted in certain circumstances involving assurance engagements where the report includes a restriction on use and distribution. In this section, an engagement to issue a restricted use and distribution assurance report in the circumstances set out in paragraph R990.3 is referred to as an “eligible assurance engagement.” Requirements and Application Material General R990.3 When a firm intends to issue a report on an assurance engagement which includes a restriction on use and distribution, the independence requirements set out in Part 4B shall be eligible for the modifications that are permitted by this section, but only if:

(a)

The firm communicates with the intended users of the report regarding the modified independence requirements that are to be applied in providing the service; and

(b)

The intended users of the report understand the purpose, subject matter information and limitations of the report and explicitly agree to the application of the modifications. 990.3 A1 The intended users of the report might obtain an understanding of the purpose, subject matter information, and limitations of the report by participating, either directly, or indirectly through a representative who has authority to act for the intended users, in establishing the nature and scope of the engagement. In either case, this participation helps the firm to communicate with intended users about independence matters, including the circumstances that are relevant to applying the conceptual framework. It also allows the firm to obtain the agreement of the intended users to the modified independence requirements.