fessional Conduct – Independence (paragraph
192, “Fees – Overdue”).2
Accordingly, CPAB proposed that the Firm
take the following steps:
a) easing to perform audits of any
C
reporting issuers that have unpaid
audit fees from prior years.
b) ppointing an individual with
A
appropriate experience to serve as an
independence monitor. This person
would have to ensure that the Firm
stays up to date with independence
requirements and adheres to any
independence-related policies. These
policies and requirements would
include, but would not be limited to:
partner rotation policies; annual
independence confirmations; and
ensuring that audits weren’t performed
until all fees for prior years had been paid.
c) aintaining these requirements until
M
CPAB has carried out a follow-up
inspection and concluded that its audit
quality has improved sufficiently.
The Firm agreed to CPAB’s proposed requirements and reported the matter to both
the ICABC and the British Columbia Securities Commission (BCSC). It also informed
all clients with unpaid fees about the new
practice restrictions. The PCEC subsequently
authorized an investigation into the matter.
ule 204 and the related Council
R
2
Interpretations (CIs) were amended to take
effect on December 15, 2014, to reflect the
revised harmonized rules on independence.
For the purpose of this article, the
amended Rule and CI numbers have been
used to enable a current reference point
for readers. The substance of the previous
Rule and CI did not change in the amended
versions. Please refer to the June/Summer
Firm e