Self review threat safeguards template. The AICPA Code provides examples of various safeguards that can be implemented by member firms, such as the use of different partners and engagement teams that have separate reporting lines in the delivery When auditors encounter the risk of assessing their own work, this is known as the self-review threat. 26–3. The self-review threat is a serious threat to the accuracy of financial statements and must be addressed accordingly. Apart from their basic services, audit firms frequently offer other services. This way, they will never face the threat of having to review their own work. Auditors should re-evaluate threats to independence, including any safeguards applied, whenever the audit organization or the auditors become aware of new information or changes in facts and circumstances that could affect whether a threat has been eliminated or reduced to an acceptable level. Accounting, valuation, taxation, and internal audit are some of its examples. It is important for audit firms to be aware of the potential for this type of conflict of interest to arise and to Under the Yellow Book’s conceptual framework approach (Paragraphs 3. 63), when a firm encounters significant threats to independence, the firm should apply safeguards to eliminate or reduce the threats to an acceptable level. Identifying guidelines for client interactions. . Key Change: Requirement to re The most effective safeguard against the self-review threat is the segregation of teams. Despite the practices you may have in place, sometimes significant threats to integrity and objectivity may not be considered reasonable in the circumstances. Identifying guidelines for client interactions. Audit firms that provide non-audit services to clients must use separate members for each assignment. Disclosing any safeguards that have been taken by the organization. qkowxqckkabtqbcqhvpwytaedrgklmmwpprsadvbiphwhvf