CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS

IN SAFA COUNTRIES

PREPARED BY:
SAFA ETHICS & INDEPENDENCE COMMITTEE
MARCH 2004

Adopted by the National Council of ICMAP in its

meeting no. 215 held on 16th - 17th July, 2005
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MRHITIRHIRGIERHSZIVWMKLXSJXLIEGGSYRXERG]TVSJIWWMSR

8LI -RXIVREXMSREP *IHIVEXMSR SJ %GGSYRXERXW -*%'  XSS LEW MWWYIH ER )\TSWYVI (VEJXW
titled “ Proposed Revised Code of Ethics for Professional Accountants” in July 2003 which
[EWJYVXLIVVIZMWIH2SZIQFIV

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JSV 4VSJIWWMSREP %GGSYRXERXW MR &YWMRIWW 8LMW 'SHI MW GYVVIRXP] FIMRK VIZMI[IH F] E
7XIIVMRK'SQQMXXIIETTSMRXIHF]XLI-*%')XLMGW'SQQMXXII

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WEJIKYEVHW QSVEP ERH JMRERGMEP XS IPMQMREXI XLVIEXW XS IRWYVI XLEX IXLMGEP GSQTPMERGI MW
RIZIVGSQTVSQMWIH


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The Code has been prepared on the basis of the “Code of Ethics for Professional
Accountants”, revised up to November 2001; Exposure Draft “Proposed 6IZMWIH 'SHI SJ
Ethics for the Professional Accountants”, July 2003; and “Proposed Revision to Code of
Ethics for Professional Ethics”, November 2003; issued by the International Federation of
%GGSYRXERXW-*%' ERHE7YVZI]SJ'SHISJ)XLMGWSJ7%*%1IQFIV&SHMIWGSRHYGXIH
MR(IGIQFIVEQSRKWXSXLIVW
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EGGSYRXERXW MR 7%*% 'SYRXVMIW ERH TVSZMHIW E GSRGITXYEP JVEQI[SVO JSV ETTP]MRK XLSWI
TVMRGMTPIW9RPIWWEPMQMXEXMSRMWWTIGMJMGEPP]WXEXIHXLIJYRHEQIRXEPTVMRGMTPIWEVIIUYEPP]
ZEPMHJSVEPPTVSJIWWMSREPEGGSYRXERXW

8LI7%*%)XLMGWERH-RHITIRHIRGI'SQQMXXIIMRPMRI[MXLXLI-*%')XLMGW'SQQMXXII
FIPMIZIW XLEX XLI IWXEFPMWLQIRX SJ E GSRGITXYEP JVEQI[SVO XLEX VIUYMVIW TVSJIWWMSREP
EGGSYRXERXW XS MHIRXMJ] IZEPYEXI ERH EHHVIWW XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIWVEXLIVXLERQIVIP]GSQTP][MXLEWIXSJWTIGMJMGVYPIWTVIWIRXP]WIXSYXF]XLI
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VIWTIGXIHXLI'SHIMRMXWIPJ[EWRSXVIUYMVIHXSFIVIKEVHIHEWEWXERHEVH


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XLVIEXW EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX TVSJIWWMSREP EGGSYRXERXW EVI VIUYMVIH [LIVI
ETTVSTVMEXI XS ETTP] WEJIKYEVHW XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER EGGITXEFPI
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MRPIKMWPEXMSRXLEXWSQI[MPPXV]XSGMVGYQREZMKEXI

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8LI'SHIEPWSMRGPYHIWEHIJMRMXMSRWWIGXMSR

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XLI TVMRGMTPIW 8LI] MHIRXMJ] ZEVMSYW GMVGYQWXERGIW TSWMRKTSXIRXMEP XLVIEXW XS GSQTPMERGI
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'SRWIUYIRXP] MX MW RSX WYJJMGMIRX JSV TVSJIWWMSREP EGGSYRXERXW QIVIP] XS GSQTP] [MXL XLI
I\EQTPIWTVIWIRXIHVEXLIVXLI]WLSYPHETTP]XLITVMRGMTPIWXSXLITEVXMGYPEVGMVGYQWXERGIW
XLI]IRGSYRXIV

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TVSJIWWMSREPFYWMRIWW
%YHMXGPMIRX%RIRXMX]MRVIWTIGXSJ[LMGLEJMVQGSRHYGXWEREYHMXIRKEKIQIRX;LIRXLI
EYHMXGPMIRXMWEPMWXIHIRXMX]EYHMXGPMIRX[MPPEP[E]WMRGPYHIMXWVIPEXIHIRXMXMIW

%YHMX IRKEKIQIRX %R EWWYVERGI IRKEKIQIRX XS TVSZMHI E LMKL PIZIP SJ EWWYVERGI XLEX
JMRERGMEPWXEXIQIRXWEVIJVIISJQEXIVMEPQMWWXEXIQIRXWYGLEWERIRKEKIQIRXMREGGSVHERGI
[MXL-RXIVREXMSREP7XERHEVHWSR%YHMXMRK-7%W EWEHSTXIHF]XLIVIWTIGXMZI1IQFIV&SH]
SJ7%*%8LMWMRGPYHIWE7XEXYXSV]%YHMX[LMGLMWEREYHMXVIUYMVIHF]REXMSREPPIKMWPEXMSR
SVSXLIVVIKYPEXMSR
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%WWYVERGIIRKEKIQIRX%RIRKEKIQIRXGSRHYGXIHXSTVSZMHI
E %LMKLPIZIPSJEWWYVERGIXLEXXLIWYFNIGXQEXXIVGSRJSVQWMREPPQEXIVMEPVIWTIGXW[MXL
MHIRXMJMIHWYMXEFPIGVMXIVMESV
F %QSHIVEXIPIZIPSJEWWYVERGIXLEXXLIWYFNIGXQEXXIVMWTPEYWMFPIMRXLIGMVGYQWXERGIW
8LMW [SYPH MRGPYHI ER IRKEKIQIRX MR EGGSVHERGI [MXL XLI -RXIVREXMSREP 7XERHEVH SR
%WWYVERGI )RKEKIQIRXW -%7)  MWWYIH F] XLI -RXIVREXMSREP %YHMXMRK ERH %WWYVERGI
7XERHEVHW &SEVH -%77&  SV MR EGGSVHERGI [MXL WTIGMJMG WXERHEVHW JSV EWWYVERGI
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EGGSVHERGI[MXL-7%WEWEHSTXIHF]XLIVIWTIGXMZI1IQFIV&SH]SJ7%*%

%WWYVERGIXIEQE %PPTVSJIWWMSREPWTEVXMGMTEXMRKMRXLIEWWYVERGIIRKEKIQIRX
F  %PP SXLIVW [MXLMR E JMVQ [LS GER HMVIGXP] MRJPYIRGI XLI SYXGSQI SJ XLI EWWYVERGI
IRKEKIQIRXMRGPYHMRKXLSWI[LSVIGSQQIRHXLIGSQTIRWEXMSRSJSV[LSTVSZMHIHMVIGX
WYTIVZMWSV] QEREKIQIRX SV SXLIV SZIVWMKLX SJ XLI EWWYVERGI IRKEKIQIRX TEVXRIV MR
GSRRIGXMSR[MXLXLITIVJSVQERGISJXLIEWWYVERGIIRKEKIQIRX*SVXLITYVTSWIWSJEREYHMX
IRKEKIQIRXXLMWMRGPYHIWXLSWIEXEPPWYGGIWWMZIP]WIRMSVPIZIPWEFSZIXLIPIEHIRKEKIQIRX
TEVXRIV XLVSYKL XLI JMVQW GLMIJ I\IGYXMZI XLSWI [LS TVSZMHI GSRWYPXEXMSR VIKEVHMRK
XIGLRMGEP SV MRHYWXV] WTIGMJMG MWWYIW XVERWEGXMSRW SV IZIRXW JSV XLI EWWYVERGI IRKEKIQIRX
ERHXLSWI[LSTVSZMHIUYEPMX]GSRXVSPJSVXLIEWWYVERGIIRKEKIQIRXERH
G  *SV XLI TYVTSWIW SJ ER EYHMX GPMIRX EPP XLSWI [MXLMR E RIX[SVO JMVQ [LS GER HMVIGXP]
MRJPYIRGIXLISYXGSQISJXLIEYHMXIRKEKIQIRX

'PMIRXEGGSYRX%R]FEROEGGSYRX[LMGLMWYWIHWSPIP]JSVXLIFEROMRKSJGPMIRXWQSRMIW
'PSWIJEQMP]%TEVIRXRSRHITIRHIRXGLMPHSVWMFPMRK


(MVIGXJMRERGMEPMRXIVIWX %JMRERGMEPMRXIVIWX
E  3[RIH HMVIGXP] F] ERH YRHIV XLI GSRXVSP SJ ER MRHMZMHYEP SV IRXMX] MRGPYHMRK XLSWI
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F  &IRIJMGMEPP] S[RIH XLVSYKL E GSPPIGXMZI MRZIWXQIRX ZILMGPI IWXEXI XVYWX SV SXLIV
MRXIVQIHMEV]SZIV[LMGLXLIMRHMZMHYEPSVIRXMX]LEWGSRXVSP
(MVIGXSVWERHSJJMGIVW8LSWIGLEVKIH[MXLXLIKSZIVRERGISJERIRXMX]VIKEVHPIWWSJXLIMV
XMXPI[LMGLQE]ZEV]JVSQGSYRXV]XSGSYRXV]
)\MWXMRK EGGSYRXERX % TVSJIWWMSREP EGGSYRXERX MR TYFPMG TVEGXMGI GYVVIRXP] LSPHMRK ER
EYHMX ETTSMRXQIRX SV GEVV]MRK SYX EGGSYRXMRK XE\EXMSR GSRWYPXMRK SV WMQMPEV TVSJIWWMSREP
WIVZMGIWJSVEGPMIRX

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MRWXVYQIRX SJ ER IRXMX] MRGPYHMRK VMKLXW ERH SFPMKEXMSRW XS EGUYMVI WYGL ER MRXIVIWX ERH
HIVMZEXMZIWHMVIGXP]VIPEXIHXSWYGLMRXIVIWX
*MVQE %WSPITVEGXMXMSRIVTEVXRIVWLMTSVGSVTSVEXMSRSJTVSJIWWMSREPEGGSYRXERXW
F %RIRXMX]XLEXGSRXVSPWWYGLTEVXMIWERH
G %RIRXMX]GSRXVSPPIHF]WYGLTEVXMIW
-QQIHMEXIJEQMP]%WTSYWISVIUYMZEPIRX SVHITIRHIRX
-RHITIRHIRGI-RHITIRHIRGIMW
E  -RHITIRHIRGI SJ QMRH  XLI WXEXI SJ QMRH XLEX TIVQMXW XLI TVSZMWMSR SJ ER STMRMSR
[MXLSYX FIMRK EJJIGXIH F]MRJPYIRGIW XLEX GSQTVSQMWI TVSJIWWMSREPNYHKQIRX EPPS[MRK ER
MRHMZMHYEPXSEGX[MXLMRXIKVMX]ERHI\IVGMWISFNIGXMZMX]ERHTVSJIWWMSREPWOITXMGMWQERH
F  -RHITIRHIRGI MR ETTIEVERGI  XLI EZSMHERGI SJ JEGXW ERH GMVGYQWXERGIW XLEX EVI WS
WMKRMJMGERX E VIEWSREFPI ERH MRJSVQIH XLMVH TEVX] LEZMRK ORS[PIHKI SJ EPP VIPIZERX
MRJSVQEXMSR MRGPYHMRK ER] WEJIKYEVHW ETTPMIH [SYPH VIEWSREFP] GSRGPYHI E JMVQW SV E
QIQFIV SJXLIEWWYVERGIXIEQWMRXIKVMX]SFNIGXMZMX] SVTVSJIWWMSREPWOITXMGMWQ LEH FIIR
GSQTVSQMWIH
-RHMVIGX JMRERGMEP MRXIVIWX % JMRERGMEP MRXIVIWX FIRIJMGMEPP] S[RIH XLVSYKL E GSPPIGXMZI
MRZIWXQIRXZILMGPIIWXEXIXVYWXSVSXLIVMRXIVQIHMEV]SZIV[LMGLXLIMRHMZMHYEPSVIRXMX]LEW
RSGSRXVSP

0IEH IRKEKIQIRX TEVXRIV MR GSRRIGXMSR [MXL ER EYHMX XLI TEVXRIV VIWTSRWMFPI JSV
WMKRMRK XLI VITSVX SR XLI GSRWSPMHEXIH JMRERGMEP WXEXIQIRXW SJ XLI EYHMX GPMIRX ERH [LIVI
VIPIZERX XLI TEVXRIV VIWTSRWMFPI JSV WMKRMRK XLI VITSVX MR VIWTIGX SJ ER] IRXMX] [LSWI
JMRERGMEP WXEXIQIRXW JSVQ TEVX SJ XLI GSRWSPMHEXIH JMRERGMEP WXEXIQIRXW ERH SR [LMGL E
WITEVEXI WXERHEPSRI VITSVX MW MWWYIH ;LIR RS GSRWSPMHEXIH JMRERGMEP WXEXIQIRXW EVI
TVITEVIH XLI PIEH IRKEKIQIRX TEVXRIV [SYPH FI XLI TEVXRIV VIWTSRWMFPI JSV WMKRMRK XLI
VITSVXSRXLIJMRERGMEPWXEXIQIRXW

0MWXIH IRXMX] %R IRXMX] [LSWI WLEVIW WXSGO SV HIFX EVI UYSXIH SV PMWXIH SR E VIGSKRM^IH
WXSGO I\GLERKI SV EVI QEVOIXIH YRHIV XLI VIKYPEXMSRW SJ E VIGSKRM^IH WXSGO I\GLERKI SV
SXLIVIUYMZEPIRXFSH]
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SV ER] IRXMX] XLEX E VIEWSREFPI ERH MRJSVQIH XLMVH TEVX] LEZMRK ORS[PIHKISJ EPP VIPIZERX
MRJSVQEXMSR [SYPH VIEWSREFP] GSRGPYHI EW FIMRK TEVX SJ XLI JMVQ REXMSREPP] SV
MRXIVREXMSREPP]


3FNIGXMZMX] % GSQFMREXMSR SJ MQTEVXMEPMX] MRXIPPIGXYEP LSRIWX] ERH E JVIIHSQ JVSQ
GSRJPMGXWSJMRXIVIWX

3JJMGI%HMWXMRGXWYFKVSYT[LIXLIVSVKERM^IHSRKISKVETLMGEPSVTVEGXMGIPMRIW
4VEGXMGI % WSPI TVEGXMXMSRIV E TEVXRIVWLMT SV E GSVTSVEXMSR SJ TVSJIWWMSREP EGGSYRXERXW
[LMGLSJJIVWTVSJIWWMSREPWIVZMGIWXSXLITYFPMG
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4VSJIWWMSREPEGGSYRXERXMRFYWMRIWW%TVSJIWWMSREPEGGSYRXERXIQTPS]IHMRWYGLEVIEWEW
GSQQIVGI MRHYWXV] WIVZMGI XLI TYFPMG WIGXSV IHYGEXMSR XLI RSX JSV TVSJMX WIGXSV
VIKYPEXSV]FSHMIWSVTVSJIWWMSREPFSHMIW
4VSJIWWMSREPEGGSYRXERXMRTYFPMGTVEGXMGI)EGLTEVXRIVSVTIVWSRSGGYT]MRKETSWMXMSR
WMQMPEVXSXLEXSJETEVXRIVERHIEGLIQTPS]IIMRETVEGXMGITVSZMHMRKTVSJIWWMSREPWIVZMGIW
XS EGPMIRX MVVIWTIGXMZI SJ XLIMVJYRGXMSREPGPEWWMJMGEXMSR IK EYHMX XE\SV GSRWYPXMRK  ERH
TVSJIWWMSREPEGGSYRXERXWMRETVEGXMGILEZMRKQEREKIVMEPVIWTSRWMFMPMXMIW8LMWXIVQMWEPWS
YWIHXSVIJIVXSEJMVQSJTVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGI
4YFPMGMX]8LIGSQQYRMGEXMSRXSXLITYFPMGSJJEGXWEFSYXETVSJIWWMSREPEGGSYRXERX[LMGL
EVIRSXHIWMKRIHJSVXLIHIPMFIVEXITVSQSXMSRSJXLEXTVSJIWWMSREPEGGSYRXERX

6IGIMZMRKEGGSYRXERX%TVSJIWWMSREPEGGSYRXERXMRTYFPMGTVEGXMGIXS[LSQXLII\MWXMRK
EGGSYRXERX SV GPMIRX SJ XLI I\MWXMRK EGGSYRXERX LEW VIJIVVIH EYHMX EGGSYRXMRK XE\EXMSR
GSRWYPXMRK SV WMQMPEV ETTSMRXQIRXW SV [LS MW GSRWYPXIH MR SVHIV XS QIIX XLI RIIHW SJ XLI
GPMIRX
6IPEXIHIRXMX]%RIRXMX]XLEXLEWER]SJXLIJSPPS[MRKVIPEXMSRWLMTW[MXLXLIGPMIRX
E %RIRXMX]XLEXLEWHMVIGXSVMRHMVIGXGSRXVSPSZIVXLIGPMIRXTVSZMHIHXLIGPMIRXMWQEXIVMEP
XSWYGLIRXMX]
F  %R IRXMX] [MXL E HMVIGX JMRERGMEP MRXIVIWX MR XLI GPMIRX TVSZMHIH XLEX WYGL IRXMX] LEW
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G %RIRXMX]SZIV[LMGLXLIGPMIRXLEWHMVIGXSVMRHMVIGXGSRXVSP
H  %R IRXMX] MR [LMGL XLI GPMIRX SV ER IRXMX] VIPEXIH XS XLIGPMIRX YRHIV G  EFSZI LEW E
HMVIGXJMRERGMEPMRXIVIWXXLEX KMZIWMXWMKRMJMGERXMRJPYIRGISZIVWYGLIRXMX]ERHXLIMRXIVIWXMW
QEXIVMEPXSXLIGPMIRXERHMXWVIPEXIHIRXMX]MRG ERH
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7SPMGMXEXMSR 8LI ETTVSEGL XS E TSXIRXMEP GPMIRX JSV XLI TYVTSWI SJ SJJIVMRK TVSJIWWMSREP
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%440-'%8-323*8,)'3()
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7)'8-324VSJIWWMSREPGSQTIXIRGIERHHYIGEVI
7)'8-32'SRJMHIRXMEPMX]
7)'8-324VSJIWWMSREPFILEZMSYV


 7)'8-32
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 8LI 7SYXL %WMER *IHIVEXMSR SJ %GGSYRXERXW 7%*%  FIPMIZIW XLEX TVITEVMRK HIXEMPIH
IXLMGEP VIUYMVIQIRXW MW TVMQEVMP] XLI VIWTSRWMFMPMX] SJ XLIQIQFIV FSHMIWMRIEGLGSYRXV]
[LMGLEVIEPWSVIWTSRWMFPIJSVMQTPIQIRXMRKERHIRJSVGMRKWYGLVIUYMVIQIRXW

 7%*% EPWS FIPMIZIW XLEX XLI KPSFEP MHIRXMX] SJ XLI EGGSYRXERG] TVSJIWWMSR MW
GLEVEGXIVM^IH F] MXW IRHIEZSYV XS EGLMIZI E RYQFIV SJ GSQQSR SFNIGXMZIW ERH F] MXW
SFWIVZERGISJGIVXEMRJYRHEQIRXEPTVMRGMTPIWJSVXLEXTYVTSWI
 7%*% VIGSKRM^MRK XLI VIWTSRWMFMPMXMIW SJ XLI EGGSYRXERG] TVSJIWWMSR ERH GSRWMHIVMRK
MXW S[R VSPI XS FI XLEX SJ IWXEFPMWLMRK LMKL UYEPMX] WXERHEVHW TVSZMHMRK KYMHERGI
IRGSYVEKMRKGSRXMRYMX]SJIJJSVXWERHTVSQSXMRKLEVQSRM^EXMSRLEWHIIQIHMXIWWIRXMEPXS
IWXEFPMWLE'SHISJ)XLMGWJSV4VSJIWWMSREP%GGSYRXERXWMR7%*%'SYRXVMIW8LMW'SHI[MPP
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2SQIQFIVFSH]SVJMVQETTPMIWPIWWWXVMRKIRXWXERHEVHWXLERXLSWIWXEXIHMRXLMW'SHI
,S[IZIV MJ QIQFIV FSHMIW SV JMVQW EVI TVSLMFMXIH JVSQ GSQTP]MRK [MXL GIVXEMR TEVXW SJ
XLMW'SHIF]PE[SVVIKYPEXMSRXLI]WLSYPHGSQTP][MXLEPPSXLIVTEVXWSJXLMW'SHI

8,)49&0-'-28)6)78
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VIWTSRWMFMPMX]MWRSXI\GPYWMZIP]XSWEXMWJ]XLIRIIHWSJERMRHMZMHYEPGPMIRXSVIQTPS]IV
 8LI TYFPMG MRXIVIWX MW GSRWMHIVIH XS FI XLI GSPPIGXMZI [IPPFIMRK SJ XLI GSQQYRMX] SJ
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KSZIVRQIRXW IQTPS]IVW IQTPS]IIW MRZIWXSVW XLI FYWMRIWW ERH JMRERGMEP GSQQYRMX] ERH
SXLIVW[LSVIP]SRXLI[SVOSJTVSJIWWMSREPEGGSYRXERXW
 8LMW 'SHI WIXW SYX XLI TVSJIWWMSREP EGGSYRXERXW IXLMGEP VIWTSRWMFMPMXMIW XS EGX MR XLI
TYFPMGMRXIVIWX

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8LMW'SHIIWXEFPMWLIWXLIJYRHEQIRXEPTVMRGMTPIWSJTVSJIWWMSREPIXLMGWJSVTVSJIWWMSREP
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PMQMXEXMSR MW WTIGMJMGEPP] WXEXIH XLI JYRHEQIRXEP TVMRGMTPIW EVI IUYEPP] ZEPMH JSV EPP
TVSJIWWMSREPEGGSYRXERXW
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ETTVSTVMEXIQMXMKEXMRKEGXMSR-REHHMXMSRXLIREXYVISJIRKEKIQIRXWERHEWWMKRQIRXWQE]
HMJJIV ERH GSRWIUYIRXP] HMJJIVIRX XLVIEXW QE] I\MWX VIUYMVMRK XLI ETTPMGEXMSR SJ HMJJIVIRX


WEJIKYEVHW  % GSRGITXYEP JVEQI[SVO XLEX VIUYMVIW TVSJIWWMSREP EGGSYRXERXW XS MHIRXMJ]
IZEPYEXI ERH EHHVIWW XLIWI XLVIEXW XS ER EGGITXEFPI PIZIP WYGL XLEX GSQTPMERGI [MXL XLI
JYRHEQIRXEPTVMRGMTPIWMWRSXGSQTVSQMWIH

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ETTVSTVMEXI WEJIKYEVHW XLI] WLSYPH IMXLIV HIGPMRI SV HMWGSRXMRYI XLI WTIGMJMG TVSJIWWMSREP
WIVZMGI MRZSPZIH SV GSRWMHIV VIWMKRMRK JVSQ XLI GPMIRX MR XLI GEWI SJ TVSJIWWMSREP
EGGSYRXERXW MR TYFPMG TVEGXMGI  SV XLI IQTPS]MRK SVKERM^EXMSR MR XLI GEWI SJ TVSJIWWMSREP
EGGSYRXERXWMRFYWMRIWW 

4VSJIWWMSREPEGGSYRXERXWLEZIERSFPMKEXMSRXSIZEPYEXIER]XLVIEXWXSGSQTPMERGI[MXL
XLIJYRHEQIRXEPTVMRGMTPIW [LIRXLI]ORS[SV GSYPH VIEWSREFP] FII\TIGXIHXS ORS[SJ
GMVGYQWXERGIW SV VIPEXMSRWLMTW XLEX QMKLX GSQTVSQMWI GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIW 8LIVI QE] FI SGGEWMSRW [LIR E TVSJIWWMSREP EGGSYRXERX MREHZIVXIRXP] ZMSPEXIW
TVSZMWMSR SJ XLMW 'SHI -J XLEX LETTIRW HITIRHMRK SR XLI REXYVI ERH WMKRMJMGERGI SJ XLI
QEXXIVMXQE]RSXGSQTVSQMWIGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIWEWPSRKEWSRGI
XLIZMSPEXMSRMWHMWGSZIVIHMXWIJJIGXMWIZEPYEXIHTVSQTXP]GSVVIGXIH[LIRETTVSTVMEXIERH
ER]RIGIWWEV]WEJIKYEVHWEVIETTPMIH

 4EVXW & ERH ' SJ XLMW 'SHI MRGPYHI I\EQTPIW XLEX EVI MRXIRHIH XS MPPYWXVEXI XLI
ETTPMGEXMSRSJXLITVMRGMTPIWERHEVIRSXMRXIRHIHXSFIRSVWLSYPHXLI]FIMRXIVTVIXIHEWER
I\LEYWXMZIPMWXSJEPPGMVGYQWXERGIWI\TIVMIRGIHF]TVSJIWWMSREPEGGSYRXERXWXLEXQE]GVIEXI
XLVIEXWXSGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIW'SRWIUYIRXP]MXMWRSXWYJJMGMIRXJSV
TVSJIWWMSREPEGGSYRXERXWQIVIP]XSGSQTP][MXLXLII\EQTPIWTVIWIRXIHVEXLIVXLI]WLSYPH
ETTP]XLITVMRGMTPIWXSXLITEVXMGYPEVGMVGYQWXERGIWXLI]IRGSYRXIV

*92(%1)28%046-2'-40)7
8LIJYRHEQIRXEPTVMRGMTPIWEVI
E -RXIKVMX]
% TVSJIWWMSREP EGGSYRXERX WLSYPH FI WXVEMKLXJSV[EVH ERH LSRIWX MR EPP TVSJIWWMSREP
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% TVSJIWWMSREP EGGSYRXERX WLSYPH RSX EPPS[ TVINYHMGI SV FMEW GSRJPMGX SJ MRXIVIWX SV
YRHYIMRJPYIRGISJSXLIVWXSSZIVVMHITVSJIWWMSREPSVFYWMRIWWNYHKQIRXW
G 4VSJIWWMSREP'SQTIXIRGIERH(YI'EVI
% TVSJIWWMSREP EGGSYRXERXLEW E GSRXMRYMRK HYX] XS QEMRXEMR TVSJIWWMSREPORS[PIHKI
ERH WOMPP EX XLI PIZIP VIUYMVIH XS IRWYVI XLEX E GPMIRX SV IQTPS]IV VIGIMZIW XLI
EHZERXEKI SJ GSQTIXIRX TVSJIWWMSREP WIVZMGI FEWIH SR GYVVIRX HIZIPSTQIRXW MR
TVEGXMGI PIKMWPEXMSR ERH XIGLRMUYIW % TVSJIWWMSREP EGGSYRXERX WLSYPH EGX HMPMKIRXP]
ERH MR EGGSVHERGI [MXL ETTPMGEFPI XIGLRMGEP ERH TVSJIWWMSREP WXERHEVHW MR EPP
TVSJIWWMSREPERHFYWMRIWWVIPEXMSRWLMTW%TVSJIWWMSREPEGGSYRXERXWLSYPHGSQTP][MXL
XLI -%7W ERH -7%W EW EHSTXIH F] XLI VIWTIGXMZI 1IQFIV &SH] SJ 7%*% WXERHEVHW
ERHKYMHIPMRIWMWWYIHF]XLIVIWTIGXMZI1IQFIV&SH]SJ7%*%ERHEPWSVIPEXIHPE[W
SJXLIVIWTIGXMZIGSYRXV]


H 'SRJMHIRXMEPMX]
% TVSJIWWMSREP EGGSYRXERX WLSYPH VIWTIGX XLI GSRJMHIRXMEPMX] SJ MRJSVQEXMSR EGUYMVIH
EWEVIWYPXSJTVSJIWWMSREPERHFYWMRIWWVIPEXMSRWLMTWERHWLSYPHRSXHMWGPSWIER]WYGL
MRJSVQEXMSR XS XLMVH TEVXMIW [MXLSYX TVSTIV ERH WTIGMJMG EYXLSVMX] YRPIWW XLIVI MW E
PIKEPSVTVSJIWWMSREPVMKLXSVHYX]XSHMWGPSWI'SRJMHIRXMEPMRJSVQEXMSREGUYMVIHEWE
VIWYPX SJ TVSJIWWMSREP ERH FYWMRIWW VIPEXMSRWLMTW WLSYPH RSX FI YWIH JSV XLI TIVWSREP
EHZERXEKISJXLITVSJIWWMSREPEGGSYRXERXSVXLMVHTEVXMIW

I 4VSJIWWMSREP&ILEZMSV
% TVSJIWWMSREP EGGSYRXERX WLSYPH GSQTP] [MXL VIPIZERX PE[W ERH VIKYPEXMSRW ERH
WLSYPHEZSMHER]EGXMSRXLEXHMWGVIHMXWXLITVSJIWWMSR
8,6)%87%2(7%*)+9%6(7

'SQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIWQE]TSXIRXMEPP]FIXLVIEXIRIHF]E
FVSEHVERKISJGMVGYQWXERGIW1ER]XLVIEXWJEPPMRXSXLIJSPPS[MRKGEXIKSVMIW

E 7IPJMRXIVIWXXLVIEXW[LMGLQE]SGGYVEWEVIWYPXSJXLIJMRERGMEPSVSXLIVMRXIVIWXW
SJTVSJIWWMSREPEGGSYRXERXWSVSJMQQIHMEXISVGPSWIJEQMP]QIQFIVW
F  7IPJVIZMI[ XLVIEXW [LMGL QE] SGGYV [LIR E TVIZMSYW NYHKQIRX RIIHW XS FI
VIIZEPYEXIHF]XLITVSJIWWMSREPEGGSYRXERXVIWTSRWMFPIJSVXLEXNYHKQIRX
G  %HZSGEG] XLVIEXW [LMGL QE] SGGYV [LIR E TVSJIWWMSREP EGGSYRXERX TVSQSXIW E
TSWMXMSRSVSTMRMSRXSXLITSMRX XLEXWYFWIUYIRXSFNIGXMZMX]QE]FIGSQTVSQMWIH

H  *EQMPMEVMX] XLVIEXW [LMGL QE] SGGYV [LIR FIGEYWI SJ E GPSWI VIPEXMSRWLMT E
TVSJIWWMSREPEGGSYRXERXFIGSQIWXSSW]QTEXLIXMGXSXLIMRXIVIWXWSJSXLIVWERH
I  -RXMQMHEXMSR XLVIEXW [LMGL QE] SGGYV [LIR E TVSJIWWMSREP EGGSYRXERX QE] FI
HIXIVVIHJVSQEGXMRKSFNIGXMZIP]F]XLVIEXWEGXYEPSVTIVGIMZIH
4EVXW&ERH'SJXLMW'SHIVIWTIGXMZIP]TVSZMHII\EQTPIWSJGMVGYQWXERGIWXLEXQE]GVIEXI
XLIWI GEXIKSVMIW SJ XLVIEX JSV TVSJIWWMSREP EGGSYRXERXW MR TYFPMG TVEGXMGI ERH TVSJIWWMSREP
EGGSYRXERXWMRFYWMRIWW
 7EJIKYEVHW XLEX QE] IPMQMREXI SV VIHYGI WYGL XLVIEXW XS ER EGGITXEFPI PIZIP JEPP MRXS
X[SFVSEHGEXIKSVMIW
E 7EJIKYEVHWGVIEXIHF]XLITVSJIWWMSRPIKMWPEXMSRSVVIKYPEXMSRERH
F 7EJIKYEVHWMRXLI[SVOIRZMVSRQIRX
 7EJIKYEVHW GVIEXIH F] XLI TVSJIWWMSR PIKMWPEXMSR SV VIKYPEXMSR MRGPYHI FYX EVI RSX
VIWXVMGXIHXS
E )HYGEXMSREPXVEMRMRKERHI\TIVMIRGIVIUYMVIQIRXWJSVIRXV]MRXSXLITVSJIWWMSR
F 'SRXMRYMRKTVSJIWWMSREPHIZIPSTQIRXVIUYMVIQIRXW


G 'SVTSVEXIKSZIVRERGIVIKYPEXMSRW
H 4VSJIWWMSREPWXERHEVHW
I 4VSJIWWMSREPSVVIKYPEXSV]QSRMXSVMRKERHHMWGMTPMREV]TVSGIHYVIW
J  )\XIVREP VIZMI[ F] E PIKEPP] IQTS[IVIH XLMVH TEVX] SJ XLI VITSVXW VIXYVRW
GSQQYRMGEXMSRWSVMRJSVQEXMSRTVSHYGIHF]ETVSJIWWMSREPEGGSYRXERX

 4EVXW & ERH ' SJ XLMW 'SHI VIWTIGXMZIP] EPWS HMWGYWW WEJIKYEVHW MR XLI [SVO
IRZMVSRQIRXJSVTVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIERHXLSWIMRFYWMRIWW
 'IVXEMR WEJIKYEVHW QE] MRGVIEWI XLI PMOIPMLSSH SJ MHIRXMJ]MRK SV HIXIVVMRK YRIXLMGEP
FILEZMSV7YGLWEJIKYEVHW[LMGLQE]FIGVIEXIHF]XLIEGGSYRXMRKTVSJIWWMSRPIKMWPEXMSR
VIKYPEXMSRSVERIQTPS]MRKSVKERM^EXMSRMRGPYHIFYXEVIRSXVIWXVMGXIHXS
)JJIGXMZI[IPPTYFPMGM^IHGSQTPEMRXWW]WXIQWSTIVEXIHF]XLIIQTPS]MRKSVKERM^EXMSRXLI
TVSJIWWMSRSVEVIKYPEXSV[LMGLIREFPIGSPPIEKYIWIQTPS]IVWERHQIQFIVWSJXLITYFPMGXS
HVE[EXXIRXMSRXSYRTVSJIWWMSREPSVYRIXLMGEPFILEZMSV
%RI\TPMGMXP]WXEXIHHYX]XSVITSVXFVIEGLIWSJIXLMGEPVIUYMVIQIRXW


8LIREXYVISJXLIWEJIKYEVHWXSFIETTPMIH[MPPZEV]HITIRHMRKSRXLIGMVGYQWXERGIW-R
I\IVGMWMRKXLIMVNYHKQIRXTVSJIWWMSREPEGGSYRXERXWWLSYPHGSRWMHIV[LEXEVIEWSREFPIERH
MRJSVQIH XLMVH TEVX] LEZMRK ORS[PIHKI SJ EPP VIPIZERX MRJSVQEXMSR MRGPYHMRK XLI
WMKRMJMGERGISJXLIXLVIEXERHXLIWEJIKYEVHWETTPMIH[SYPHGSRGPYHIXSFIYREGGITXEFPI

)8,-'%0'32*0-'86)73098-32
 -R ETTP]MRK WXERHEVHW SJ IXLMGEP GSRHYGX TVSJIWWMSREP EGGSYRXERXW QE] IRGSYRXIV
TVSFPIQW MR VIWSPZMRK ER IXLMGEP GSRJPMGX;LIR JEGIH [MXL WMKRMJMGERXIXLMGEP MWWYIW XLI]
WLSYPHJSPPS[XLIIWXEFPMWLIHTSPMGMIWSJXLIMVJMVQIQTPS]MRKSVKERM^EXMSRSVTVSJIWWMSREP
FSH]XSXV]ERHVIWSPZIXLIGSRJPMGX
 ;LIR MRMXMEXMRK IMXLIV E JSVQEP SV MRJSVQEP GSRJPMGX VIWSPYXMSR TVSGIWW TVSJIWWMSREP
EGGSYRXERXW WLSYPH GSRWMHIV XLI JSPPS[MRK IMXLIV MRHMZMHYEPP] SV XSKIXLIV [MXL SXLIVW EW
TEVXSJXLIVIWSPYXMSRTVSGIWW
E 6IPIZERXJEGXW
F )XLMGEPMWWYIWMRZSPZIH

G *YRHEQIRXEPTVMRGMTPIWVIPEXIHXSXLIQEXXIVMRUYIWXMSR
H )WXEFPMWLIHMRXIVREPTVSGIHYVIWERH
I %PXIVREXMZIGSYVWIWSJEGXMSR
,EZMRKGSRWMHIVIHXLIWIMWWYIWTVSJIWWMSREPEGGSYRXERXWWLSYPHHIXIVQMRIXLIFIWXGSYVWI
SJEGXMSRGSRWMWXIRX[MXLXLIJYRHEQIRXEPTVMRGMTPIWMHIRXMJMIH8LI]WLSYPHEPWS[IMKL XLI
GSRWIUYIRGIW SJ IEGL TSWWMFPI GSYVWI SJ EGXMSR -J XLI QEXXIV VIQEMRW YRVIWSPZIH XLI]
WLSYPHETTVSEGLSXLIVETTVSTVMEXITIVWSRW[MXLMRXLIMVJMVQSVXLIMVIQTPS]MRKSVKERM^EXMSR
JSVLIPTMRSFXEMRMRKVIWSPYXMSR

 ;LIVI E QEXXIV MRZSPZIW E GSRJPMGX [MXL SV [MXLMR ER SVKERM^EXMSR TVSJIWWMSREP
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JSV KSZIVRERGI SJ XLEX SVKERM^EXMSR -X QE] FI MR XLI FIWX MRXIVIWXW SJ XLI TVSJIWWMSREP
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HIGMWMSRWXEOIRGSRGIVRMRKXLEXMWWYI
 -J E WMKRMJMGERX GSRJPMGX GERRSX FI VIWSPZIH TVSJIWWMSREP EGGSYRXERXW QE] [MWL XS
GSRWYPX XLI VIPIZERX TVSJIWWMSREP FSH] [LMGL QE] FI EFPI XS TVSZMHI KYMHERGI SRIXLMGEP
MWWYIW[MXLSYXFVIEGLMRKGSRJMHIRXMEPMX]8LI]QE]EPWSGSRWMHIVWIIOMRKPIKEPEHZMGI
 -J EJXIV I\LEYWXMRK EPP VIPIZERX TSWWMFMPMXMIW XLI QEXXIV VIQEMRW YRVIWSPZIH
TVSJIWWMSREP EGGSYRXERXW WLSYPH [LIVI TSWWMFPI VIJYWI XS VIQEMR EWWSGMEXIH [MXL XLI
QEXXIV8LI]QE]EPWSGSRWMHIV[LIXLIVMRXLIGMVGYQWXERGIWMXMWETTVSTVMEXIXS[MXLHVE[
JVSQ XLI IRKEKIQIRX XIEQ SV WTIGMJMG EWWMKRQIRX SV XS VIWMKR EPXSKIXLIV JVSQ XLI
IRKEKIQIRXXLIJMVQSVXLIIQTPS]MRKSVKERM^EXMSR


 7)'8-32

-28)+6-8=
 8LI TVMRGMTPI SJ MRXIKVMX] MQTSWIW ER SFPMKEXMSR SR EPP TVSJIWWMSREP EGGSYRXERXW XS FI
WXVEMKLXJSV[EVHERHLSRIWXMRTVSJIWWMSREPERHFYWMRIWWVIPEXMSRWLMTW-RXIKVMX]EPWSMQTPMIW
JEMVHIEPMRKERHXVYXLJYPRIWW
 4VSJIWWMSREP EGGSYRXERXW WLSYPH RSX FI EWWSGMEXIH [MXL VITSVXW VIXYVRW
GSQQYRMGEXMSRWSVSXLIVMRJSVQEXMSR[LIVIXLI]FIPMIZIXLEXXLIMRJSVQEXMSR
E 'SRXEMRWEQEXIVMEPP]JEPWISVQMWPIEHMRKWXEXIQIRX
F 'SRXEMRWWXEXIQIRXWSVMRJSVQEXMSRJYVRMWLIHVIGOPIWWP]SV

G 3QMXW SV SFWGYVIW MRJSVQEXMSR VIUYMVIH XS FI MRGPYHIH [LIVI WYGL SQMWWMSR SV
SFWGYVMX][SYPHFIQMWPIEHMRK


 7)'8-32
3&.)'8-:-8=
8LITVMRGMTPI SJSFNIGXMZMX]MQTSWIWERSFPMKEXMSRSR EPPTVSJIWWMSREPEGGSYRXERXW XLEX
XLIMV TVSJIWWMSREP SV FYWMRIWW NYHKQIRX WLSYPH RSX FI GSQTVSQMWIH F] TVINYHMGI SV FMEW
GSRJPMGXSJMRXIVIWXSVXLIYRHYIMRJPYIRGISJSXLIVW

4VSJIWWMSREPEGGSYRXERXWQE]FII\TSWIHXSWMXYEXMSRWXLEXQE]MQTEMVXLIMVSFNIGXMZMX]
-X MW MQTVEGXMGEFPI XS HIJMRI ERH TVIWGVMFI EPP WYGL WMXYEXMSRW 6IPEXMSRWLMTW XLEX EPPS[
TVINYHMGI FMEW SV XLI YRHYI MRJPYIRGIW SJ SXLIVW XS SZIVVMHI TVSJIWWMSREP NYHKQIRX
WLSYPHFIEZSMHIH


 7)'8-32
463*)77-32%0'314)8)2')%2((9)'%6)
 8LI TVMRGMTPI SJ TVSJIWWMSREP GSQTIXIRGI ERH HYI GEVI MQTSWIW XLI JSPPS[MRK
SFPMKEXMSRWSRTVSJIWWMSREPEGGSYRXERXW
E 8SQEMRXEMRTVSJIWWMSREPORS[PIHKIERHWOMPPEXXLIPIZIPVIUYMVIHXSIRWYVIXLEXGPMIRXW
SVIQTPS]IVWVIGIMZIGSQTIXIRXTVSJIWWMSREPWIVZMGIERH
F 8SEGXHMPMKIRXP]MREGGSVHERGI[MXLETTPMGEFPIXIGLRMGEPERHTVSJIWWMSREPWXERHEVHWMR
EPPTVSJIWWMSREPERHFYWMRIWWVIPEXMSRWLMTW

 'SQTIXIRX TVSJIWWMSREP WIVZMGI VIUYMVIW XLI I\IVGMWI SJ WSYRH NYHKQIRX MR ETTP]MRK
TVSJIWWMSREP ORS[PIHKI ERH WOMPP MR XLI TIVJSVQERGI SJ WYGL WIVZMGI 4VSJIWWMSREP
GSQTIXIRGIQE]FIHMZMHIHMRXSX[SWITEVEXITLEWIW
E %XXEMRQIRXSJTVSJIWWMSREPGSQTIXIRGIERH
F 1EMRXIRERGISJTVSJIWWMSREPGSQTIXIRGI
8LIEXXEMRQIRXSJTVSJIWWMSREPGSQTIXIRGIMRMXMEPP]VIUYMVIWELMKLWXERHEVHSJKIRIVEP
IHYGEXMSR JSPPS[IH F] WTIGMJMG IHYGEXMSR XVEMRMRK ERH I\EQMREXMSR MR TVSJIWWMSREPP]
VIPIZERXWYFNIGXWERHMJTVIWGVMFIHETIVMSHSJ[SVOI\TIVMIRGI8LMWWLSYPHFIXLIRSVQEP
TEXXIVR SJ HIZIPSTQIRX JSV TVSJIWWMSREPEGGSYRXERXW 4VSJIWWMSREP EGGSYRXERXW WLSYPH EPWS
XEOIWXITWXSIRWYVIXLEXXLSWI[SVOMRKYRHIVXLIMVEYXLSVMX]MRETVSJIWWMSREPGETEGMX]LEZI
ETTVSTVMEXIXVEMRMRK
 8LI QEMRXIRERGI SJ TVSJIWWMSREP GSQTIXIRGI VIUYMVIW E GSRXMRYMRK E[EVIRIWW SJ
VIPIZERXXIGLRMGEPTVSJIWWMSREPERHFYWMRIWWHIZIPSTQIRXW

 (MPMKIRGI IRGSQTEWWIW XLI VIWTSRWMFMPMX] XS EGX MR EGGSVHERGI [MXL XLI
VIUYMVIQIRXWSJEREWWMKRQIRXGEVIJYPP]XLSVSYKLP]ERHSREXMQIP]FEWMW
;LIVIETTVSTVMEXITVSJIWWMSREPEGGSYRXERXWWLSYPHQEOIGPMIRXWSVIQTPS]IVWE[EVISJ
PMQMXEXMSRW MRLIVIRX MR GIVXEMR WIVZMGIW XS EZSMH XLI QMWMRXIVTVIXEXMSR SJ ER I\TVIWWMSR SJ
STMRMSREWEREWWIVXMSRSJJEGX


 7)'8-32
'32*-()28-%0-8=
8LITVMRGMTPISJGSRJMHIRXMEPMX]MQTSWIWERSFPMKEXMSRSRTVSJIWWMSREPEGGSYRXERXW
XSVIJVEMRJVSQ
E  (MWGPSWMRK GSRJMHIRXMEP MRJSVQEXMSR EGUYMVIH EW E VIWYPX SJ TVSJIWWMSREP ERH
FYWMRIWWVIPEXMSRWLMTW[MXLSYXTVSTIVERHWTIGMJMGEYXLSVMX]SVYRPIWWXLIVIMWEPIKEP
SVTVSJIWWMSREPVMKLXSVHYX]XSHMWGPSWIERH

F  9WMRK GSRJMHIRXMEP MRJSVQEXMSR EGUYMVIH EW E VIWYPX SJ TVSJIWWMSREP ERH FYWMRIWW
VIPEXMSRWLMTWXSXLIMVTIVWSREPEHZERXEKISVXLIEHZERXEKISJXLMVHTEVXMIW
4VSJIWWMSREPEGGSYRXERXWWLSYPHQEMRXEMRGSRJMHIRXMEPMX]IZIRMREWSGMEPIRZMVSRQIRX
TEVXMGYPEVP] MR GMVGYQWXERGIW [LIVI PSRK EWWSGMEXMSR [MXL FYWMRIWW EWWSGMEXIW SV GPSWI SV
MQQIHMEXI JEQMP] VIPEXMSRWLMTW QMKLX VIWYPX MR XLIMV FIMRK PIWW EPIVX XS XLI TSWWMFMPMX] XLEX
XLI]QE]FIMREHZIVXIRXP]MRHMWGVIIX
 4VSJIWWMSREP EGGSYRXERXW WLSYPH EPWS QEMRXEMR GSRJMHIRXMEPMX] VIKEVHMRK MRJSVQEXMSR
HMWGPSWIHF]TVSWTIGXMZIGPMIRXWSVIQTPS]IVW

4VSJIWWMSREPEGGSYRXERXWWLSYPHXEOIEPPVIEWSREFPIWXITWXSIRWYVIXLEXWXEJJYRHIVXLIMV
GSRXVSP ERH TIVWSRW JVSQ [LSQ EHZMGI ERH EWWMWXERGI MW SFXEMRIH VIWTIGX XLI HYX] SJ
GSRJMHIRXMEPMX]
8LIRIIHXSGSQTP][MXLXLITVMRGMTPISJGSRJMHIRXMEPMX]GSRXMRYIWIZIREJXIVXLIIRHSJ
VIPEXMSRWLMTW FIX[IIR TVSJIWWMSREP EGGSYRXERXW ERH XLIMV GPMIRXW SV IQTPS]IVW ;LIR
TVSJIWWMSREPEGGSYRXERXWGLERKIIQTPS]QIRXSVEGUYMVIRI[GPMIRXWXLI]EVIIRXMXPIHXSYWI
XLII\TIVMIRGIKEMRIHMRXLIMVTVIZMSYWEGXMZMXMIW8LI]WLSYPHRSXLS[IZIVYWISVHMWGPSWI
ER] GSRJMHIRXMEP MRJSVQEXMSR IMXLIV EGUYMVIH SV VIGIMZIH F] XLIQ EW E VIWYPX SJ E
TVSJIWWMSREPSVFYWMRIWWVIPEXMSRWLMT
8LIJSPPS[MRKEVIGMVGYQWXERGIW[LIVITVSJIWWMSREPEGGSYRXERXWEVIVIUYMVIHXSHMWGPSWI
GSRJMHIRXMEPMRJSVQEXMSRSV[LIRWYGLHMWGPSWYVIQE]FIETTVSTVMEXI
E (MWGPSWYVIMWTIVQMXXIHF]PE[ERHMWEYXLSVM^IHF]XLIGPMIRXSVXLIIQTPS]IV
F (MWGPSWYVIMWVIUYMVIHF]PE[JSVI\EQTPI
M  4VSHYGXMSR SJ HSGYQIRXW SV SXLIV TVSZMWMSR SJ IZMHIRGI MR XLI GSYVWI SJ PIKEP
TVSGIIHMRKW
MM (MWGPSWYVIXSXLIETTVSTVMEXITYFPMGEYXLSVMXMIWSJMRJVMRKIQIRXWSJXLIPE[XLEXGSQIXS
PMKLXERH
G 8LIVIMWETVSJIWWMSREPHYX]SVVMKLXXSHMWGPSWI[LIRRSXTVSLMFMXIHF]PE[
M 8SGSQTP][MXLXIGLRMGEPWXERHEVHWERHIXLMGWVIUYMVIQIRXW
MM 8STVSXIGXXLITVSJIWWMSREPMRXIVIWXWSJETVSJIWWMSREPEGGSYRXERXMRPIKEPTVSGIIHMRKW
MMM 8SGSQTP][MXLXLIUYEPMX]VIZMI[SJEQIQFIVFSH]SVTVSJIWWMSREPFSH]SV
MZ 8SVIWTSRHXSERMRUYMV]SVMRZIWXMKEXMSRF]EQIQFIVFSH]SVVIKYPEXSV]FSH]


 -R HIGMHMRK [LIXLIV XS HMWGPSWI GSRJMHIRXMEP MRJSVQEXMSR TVSJIWWMSREP EGGSYRXERXW
WLSYPHGSRWMHIVXLIJSPPS[MRKTSMRXW
E  ;LIREGPMIRX SVIQTPS]IV KMZIWEYXLSVM^EXMSRXSHMWGPSWI MRJSVQEXMSR[LIXLIV SVRSX
XLI MRXIVIWXW SJ EPP XLI TEVXMIW MRGPYHMRK XLMVH TEVXMIW [LSWI MRXIVIWXW QMKLX FI EJJIGXIH
GSYPHFILEVQIH
F ;LIXLIVSVRSXEPPXLIVIPIZERXMRJSVQEXMSRMWORS[RERHWYFWXERXMEXIHXSXLII\XIRXMXMW
TVEGXMGEFPI [LIR XLI WMXYEXMSR MRZSPZIW YRWYFWXERXMEXIH JEGXW MRGSQTPIXI MRJSVQEXMSR SV
YRWYFWXERXMEXIHGSRGPYWMSRWTVSJIWWMSREPNYHKQIRXWLSYPHFIYWIHMRHIXIVQMRMRKXLIX]TI
SJHMWGPSWYVIXSFIQEHIMJER]ERH
G 8LIX]TISJGSQQYRMGEXMSRXLEXMWI\TIGXIHERHXS[LSQMXMWEHHVIWWIHMRTEVXMGYPEV
TVSJIWWMSREPEGGSYRXERXWWLSYPHFIWEXMWJMIHXLEXXLITEVXMIWXS[LSQXLIGSQQYRMGEXMSRMW
EHHVIWWIHEVIETTVSTVMEXIVIGMTMIRXW


 7)'8-32
463*)77-32%0&),%:-396
 8LI TVMRGMTPI SJ TVSJIWWMSREP FILEZMSYV MQTSWIW ER SFPMKEXMSR SR TVSJIWWMSREP
EGGSYRXERXW XS GSQTP] [MXL VIPIZERX PE[W ERH VIKYPEXMSRW ERH EZSMH ER] EGXMSR XLEX
QMKLXFVMRKHMWGVIHMXXSXLITVSJIWWMSR*SVI\EQTPIRSXFIMRKEJIPPS[4VIWMHIRX:MGI
TVIWMHIRX SV E QIQFIV SJ 'SYRGMP SJ XLI -RWXMXYXI WX]PI LMQWIPJ FIMRK WS +IRIVEPP]
[MPPJYPP] QEPMKR XLI -RWXMXYXI XLI 'SYRGMP SV MXW 'SQQMXXIIW XS PS[IV XLI TVIWXMKI SV XS
MRXIVJIVI[MXLXLITIVJSVQERGISJXLIMVHYXMIWMRVIPEXMSRXSLMQWIPJSVSXLIVW &IGEYWIWYGL
FILEZMSYV HMWGVIHMXW TVSJIWWMSR XLI TVSJIWWMSREP EGGSYRXERXW WLSYPH RSX HS WS 8LMW
EPWS ETTPMIW XS WMXYEXMSRW [LMGL GSYPH FI TVIWYQIH F] E VIEWSREFPI ERH MRJSVQIH XLMVH
TEVX]LEZMRKORS[PIHKISJEPPVIPIZERXMRJSVQEXMSRXSMQTEGXSRXLIKSSHVITYXEXMSRSJXLI
TVSJIWWMSR

-RQEVOIXMRKERHTVSQSXMRKXLIQWIPZIWERHXLIMV[SVOTVSJIWWMSREPEGGSYRXERXW
WLSYPH RSX FVMRK XLI TVSJIWWMSR MRXS HMWVITYXI 4VSJIWWMSREP EGGSYRXERXW WLSYPH FI
LSRIWXERHXVYXLJYPERHWLSYPHRSX
E 1EOII\EKKIVEXIHGPEMQWJSVXLIWIVZMGIWXLI]EVIEFPIXSSJJIVXLIUYEPMJMGEXMSRW
XLI]TSWWIWWSVI\TIVMIRGIXLI]LEZIKEMRIHSV

F  1EOI HMWTEVEKMRK VIJIVIRGIW SV YRWYFWXERXMEXIH GSQTEVMWSRW XS XLI [SVO SJ

SXLIVW


 4%68&463*)77-32%0%''3928%287-249&0-'46%'8-')
7)'8-32-RXVSHYGXMSR

7)'8-32&ILEZMSVMRTYFPMGTVEGXMGI
7)'8-32'SRJPMGXWSJMRXIVIWX
7)'8-32'LERKIWMRETVSJIWWMSREPETTSMRXQIRX

7)'8-327IGSRHSTMRMSRW
7)'8-32*IIWERHSXLIVX]TIWSJVIQYRIVEXMSR
7)'8-32'YWXSH]SJGPMIRXEWWIXW

7)'8-32-RHITIRHIRGI


 7)'8-32
-2863(9'8-32

+)2)6%0
 8LMW 4EVX SJ XLI 'SHI ETTPMIW XS EPP TVSJIWWMSREP EGGSYRXERXW MR TYFPMG TVEGXMGI
4VSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIWLSYPHEPWSJSPPS[XLIKYMHERGIWIXSYXMR4EVX%
SJ XLMW 'SHI [LMGL ETTPMIW XS EPP TVSJIWWMSREP EGGSYRXERXW ;LIVe the term “professional
accountants” is used in this Part, it should be taken to refer to professional accountants in
TYFPMGTVEGXMGI
 4VSJIWWMSREP EGGSYRXERXW MR TYFPMG TVEGXMGI WLSYPH GSQTP] [MXL XLI JYRHEQIRXEP
TVMRGMTPIW [LMGL EVIE  -RXIKVMX] F  3FNIGXMZMX] G  4VSJIWWMSREP 'SQTIXIRGI ERH (YI
'EVI H  'SRJMHIRXMEPMX] ERH I  4VSJIWWMSREP &ILEZMSV HMWGYWWIH QSVI JYPP] MR 7IGXMSR
SJ4EVX%
 4VSJIWWMSREP EGGSYRXERXW MR TYFPMG TVEGXMGI WLSYPH RSX GSRGYVVIRXP] IRKEKI MR ER]
FYWMRIWW SGGYTEXMSR SV EGXMZMX] XLEX MQTEMVW SV QMKLX MQTEMV XLIMVMRXIKVMX] SFNIGXMZMX] SV
XLIKSSHVITYXEXMSRSJXLITVSJIWWMSRERHXLEX[SYPHFIMRGSQTEXMFPI[MXLXLIVIRHIVMRKSJ
TVSJIWWMSREPWIVZMGIW

8LIGMVGYQWXERGIWMR[LMGLTVSJIWWMSREPEGGSYRXERXWSTIVEXIQE]KMZIVMWIXSWTIGMJMG
XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW 8LMW 4EVX SJ XLI 'SHI SJ )XLMGW
TVSZMHIW E JVEQI[SVO FYMPX SR TVMRGMTPIW XS EWWMWX TVSJIWWMSREP EGGSYRXERXW MR TYFPMG
TVEGXMGI XS MHIRXMJ] IZEPYEXI ERH VIWTSRH XS XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIW-JMHIRXMJMIHXLVIEXWEVISXLIVXLERGPIEVP]MRWMKRMJMGERXTVSJIWWMSREPEGGSYRXERXW
WLSYPH [LIVI ETTVSTVMEXI ETTP] WEJIKYEVHW XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER
EGGITXEFPIPIZIPWYGLXLEXGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIWMWRSXGSQTVSQMWIH
-J XLI] GERRSX MQTPIQIRX ETTVSTVMEXI WEJIKYEVHW TVSJIWWMSREP EGGSYRXERXW WLSYPH IMXLIV
HIGPMRISVHMWGSRXMRYIXLIWTIGMJMGIRKEKIQIRXMRZSPZIHSVGSRWMHIV[MXLHVE[MRKJVSQXLI
GPMIRXVIPEXMSRWLMT

8LII\EQTPIWMRXLIJSPPS[MRKWIGXMSRWEVIMRXIRHIHXSMPPYWXVEXIXLIETTPMGEXMSRSJXLI
TVMRGMTPIWERHEVIRSXMRXIRHIHXSFIRSVWLSYPHXLI]FIMRXIVTVIXIHEWERI\LEYWXMZIPMWXSJ
EPPGMVGYQWXERGIWI\TIVMIRGIHF]TVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIXLEXQE]GVIEXI
XLVIEXWXSGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIW'SRWIUYIRXP]MXMWRSXWYJJMGMIRXJSV
TVSJIWWMSREPEGGSYRXERXWQIVIP]XSGSQTP][MXLXLII\EQTPIWTVIWIRXIHVEXLIVXLI]WLSYPH
ETTP]XLITVMRGMTPIWXSXLITEVXMGYPEVGMVGYQWXERGIWXLI]JEGI
'SQTPMERGI[MXLXLIJYRHEQIRXEP TVMRGMTPIWQE] TSXIRXMEPP]FIXLVIEXIRIHF] EFVSEH
VERKISJGMVGYQWXERGIW1ER]XLVIEXWJEPPMRXSXLIJSPPS[MRKGEXIKSVMIW
E 7IPJMRXIVIWX
F 7IPJVIZMI[
G %HZSGEG]

H *EQMPMEVMX]ERH
I -RXMQMHEXMSR
8LIWIXLVIEXWEVIHMWGYWWIHQSVIJYPP]MR4EVX%SJXLMW'SHI


8LI REXYVI ERH WMKRMJMGERGI SJ XLI XLVIEXW QE] HMJJIV HITIRHMRK SR [LIXLIV XLI] EVMWI MR
VIPEXMSRXSXLITVSZMWMSRSJWIVZMGIWXSEREYHMXGPMIRXERSREYHMXEWWYVERGIGPMIRXSVERSR
EWWYVERGIGPMIRX
 )\EQTPIW SJ GMVGYQWXERGIW XLEX QE] GVIEXI WIPJMRXIVIWX XLVIEXW JSV TVSJIWWMSREP
EGGSYRXERXWMRTYFPMGTVEGXMGIMRGPYHIFYXEVIRSXPMQMXIHXS
E %JMRERGMEPMRXIVIWXMREGPMIRX[LIVIXLITIVJSVQERGISJTVSJIWWMSREPWIVZMGIWQE]
EJJIGXXLIZEPYISJXLEXMRXIVIWX

F %PSERXSSVJVSQEREWWYVERGIGPMIRXSVER]SJMXWHMVIGXSVWSVSJJMGIVW[LIVIXLI
TIVJSVQERGISJTVSJIWWMSREPWIVZMGIWQE]EJJIGXXLIZEPYISJXLEXPSER
G 'SRGIVREFSYXXLITSWWMFMPMX]SJPSWMRKEVIGYVVMRKGPMIRX

H 4SXIRXMEPIQTPS]QIRX[MXLEGPMIRX
)\EQTPIWSJGMVGYQWXERGIWXLEXQE]GVIEXIWIPJVIZMI[XLVIEXWMRGPYHIFYXEVIRSX
PMQMXIHXS
E 8LIHMWGSZIV]SJEWMKRMJMGERXIVVSVHYVMRKEVIIZEPYEXMSR
F 6ITSVXMRKSRXLISTIVEXMSRSJJMRERGMEPW]WXIQWEJXIVFIMRKMRZSPZIHMRXLIMVHIWMKR
SVMQTPIQIRXEXMSR

G %QIQFIVSJXLIIRKEKIQIRXXIEQJSVEREWWYVERGIGPMIRXFIMRKSVLEZMRKVIGIRXP]
FIIREHMVIGXSVSVSJJMGIVSJXLEXGPMIRX
H %QIQFIVSJXLIIRKEKIQIRXXIEQFIMRKSVLEZMRKVIGIRXP]FIIRIQTPS]IHF]XLI
GPMIRXMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERXMRJPYIRGISZIVXLIWYFNIGXQEXXIVSJ
XLIIRKEKIQIRX

I  ,EZMRK TVITEVIH XLI SVMKMREP HEXE YWIH XS KIRIVEXI VIGSVHW XLEX EVI XLI WYFNIGX
QEXXIVSJXLIIRKEKIQIRX
)\EQTPIWSJ GMVGYQWXERGIWXLEXQE]GVIEXIEHZSGEG]XLVIEXWMRGPYHIFYXEVIRSX
PMQMXIHXS
E 4VSQSXMRKWLEVIWMREPMWXIHIRXMX][LIRXLEXIRXMX]MWEREYHMXGPMIRX

F  %GXMRKEWER EHZSGEXISR FILEPJ SJ ER EWWYVERGIGPMIRXMR VIWSPZMRK HMWTYXIW[MXL

XLMVHTEVXMIW
 )\EQTPIW SJ GMVGYQWXERGIW XLEX QE] GVIEXI JEQMPMEVMX] XLVIEXW MRGPYHI FYX EVI
RSXPMQMXIHXS
E %QIQFIVSJXLIIRKEKIQIRXXIEQLEZMRKEGPSWISVMQQIHMEXIJEQMP]VIPEXMSRWLMT
[MXLEHMVIGXSVSVSJJMGIVSJXLIGPMIRX
F %QIQFIVSJXLIIRKEKIQIRXXIEQLEZMRKEGPSWISVMQQIHMEXIJEQMP]VIPEXMSRWLMT
[MXL ER IQTPS]II SJ XLI GPMIRX [LS MW MR E TSWMXMSR XS I\IVX HMVIGX ERH WMKRMJMGERX
MRJPYIRGISZIVXLIWYFNIGXQEXXIVSJXLIIRKEKIQIRX
G %JSVQIVTEVXRIVSJXLIJMVQFIMRKEHMVIGXSVSVSJJMGIVSJXLIGPMIRXSVERIQTPS]II
MR E TSWMXMSR XS I\IVX HMVIGX ERH WMKRMJMGERX MRJPYIRGI SZIV XLI WYFNIGX QEXXIV SJ XLI
IRKEKIQIRX
H %GGITXMRKKMJXWSVTVIJIVIRXMEPXVIEXQIRXYRPIWWXLIZEPYIMWGPIEVP]MRWMKRMJMGERX


)\EQTPIWSJGMVGYQWXERGIWXLEXQE] GVIEXIMRXMQMHEXMSRXLVIEXWMRGPYHIFYXEVI
RSXPMQMXIHXS
E &IMRKXLVIEXIRIH[MXLHMWQMWWEPSVVITPEGIQIRXMRVIPEXMSRXSEGPMIRXIRKEKIQIRX
F &IMRKXLVIEXIRIH[MXLPMXMKEXMSR
G &IMRKTVIWWYVIHXSVIHYGIMRETTVSTVMEXIP]XLII\XIRXSJ[SVOTIVJSVQIHMRSVHIV
XSVIHYGIJIIW
4VSJIWWMSREPEGGSYRXERXWQE]EPWSJMRHXLEXWTIGMJMGGMVGYQWXERGIWKMZIVMWIXSYRMUYI
XLVIEXWXSGSQTPMERGI[MXLSRISVQSVISJXLIJYRHEQIRXEPTVMRGMTPIW7YGLYRMUYIXLVIEXW
SFZMSYWP] GERRSX FI GEXIKSVM^IH -R IMXLIV TVSJIWWMSREP SV FYWMRIWW VIPEXMSRWLMTW
TVSJIWWMSREPEGGSYRXERXWWLSYPHEP[E]WFISRXLIEPIVXJSVWYGLGMVGYQWXERGIWERHXLVIEXW

 7EJIKYEVHW XLEX QE] IPMQMREXI SV VIHYGI XLVIEXW XS ER EGGITXEFPI PIZIP JEPP MRXS X[S
FVSEHGEXIKSVMIW
E 7EJIKYEVHWGVIEXIHF]XLITVSJIWWMSRPIKMWPEXMSRSVVIKYPEXMSRERH
F 7EJIKYEVHWMRXLI[SVOIRZMVSRQIRX
-RXLI[SVOIRZMVSRQIRXXLIVIPIZERXWEJIKYEVHW[MPPZEV]HITIRHMRKSRXLIGMVGYQWXERGIW
-R I\IVGMWMRK XLIMV NYHKQIRX MR XIVQW SJ LS[ XS FIWX HIEP [MXL ER MHIRXMJMIH XLVIEX
TVSJIWWMSREP EGGSYRXERXW WLSYPH GSRWMHIV [LEX E VIEWSREFPI ERH MRJSVQIH XLMVH TEVX]
LEZMRK ORS[PIHKI SJEPP VIPIZERXMRJSVQEXMSR MRGPYHMRK XLIWMKRMJMGERGI SJ XLI XLVIEX ERH
XLIWEJIKYEVHWETTPMIH[SYPHVIEWSREFP]GSRGPYHIXSFIYREGGITXEFPI8LIMVGSRWMHIVEXMSR
[MPP FI EJJIGXIH F] QEXXIVW WYGL EW XLI WMKRMJMGERGI SJ XLI XLVIEX XLI REXYVI SJ XLI
IRKEKIQIRXERHXLIWXVYGXYVISJXLIJMVQ
)\EQTPIWSJWEJIKYEVHWGVIEXIHF]XLITVSJIWWMSRPIKMWPEXMSRSVVIKYPEXMSREVIHIXEMPIH
MRTEVEKVETLSJ4EVX%SJXLMW'SHI

*MVQ[MHIWEJIKYEVHWMRXLI[SVOIRZMVSRQIRXMIXLIJMVQ QE]MRGPYHI

E  *MVQ PIEHIVWLMT XLEX WXVIWWIW XLI MQTSVXERGI SJ GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIW
F 4SPMGMIWERHTVSGIHYVIWXSMQTPIQIRXERHQSRMXSVUYEPMX]GSRXVSPSJGPMIRXIRKEKIQIRXW

G  (SGYQIRXIH TSPMGMIW VIKEVHMRK XLI MHIRXMJMGEXMSR SJ XLVIEXW XS GSQTPMERGI [MXL XLI
JYRHEQIRXEP TVMRGMTPIW XLI IZEPYEXMSR SJ XLI WMKRMJMGERGI SJ XLIWI XLVIEXW ERH XLI
MHIRXMJMGEXMSRERHXLIETTPMGEXMSRSJWEJIKYEVHWXSIPMQMREXISVVIHYGIXLIXLVIEXWSXLIVXLER
XLSWIXLEXEVIGPIEVP]MRWMKRMJMGERXXSEREGGITXEFPIPIZIP

H -RXIVREPTSPMGMIWERHTVSGIHYVIWVIUYMVMRKGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIW
I  4SPMGMIW ERH TVSGIHYVIW XLEX [MPP IREFPI XLI MHIRXMJMGEXMSR SJ MRXIVIWXW SV VIPEXMSRWLMTW
FIX[IIRXLIJMVQSVQIQFIVWSJIRKEKIQIRXXIEQWERHGPMIRXW
J  4SPMGMIW ERH TVSGIHYVIW XS QSRMXSV ERH MJ RIGIWWEV] QEREKI XLI VIPMERGI SR VIZIRYI
VIGIMZIHJVSQEWMRKPIGPMIRX
K 9WMRKHMJJIVIRXTEVXRIVWERHXIEQW[MXLWITEVEXIVITSVXMRKPMRIWJSVXLITVSZMWMSRSJRSR
EWWYVERGIWIVZMGIWXSEREWWYVERGIGPMIRX


L 4SPMGMIWERHTVSGIHYVIWXSTVSLMFMXMRHMZMHYEPW[LSEVIRSXQIQFIVWSJERIRKEKIQIRX
XIEQJVSQMRETTVSTVMEXIP]MRJPYIRGMRKXLISYXGSQISJXLI IRKEKIQIRX

M 8MQIP]GSQQYRMGEXMSRSJEJMVQWTSPMGMIWERHTVSGIHYVIWERHER]GLERKIWXSXLIQXS
EPPTEVXRIVWERHTVSJIWWMSREPWXEJJMRGPYHMRKETTVSTVMEXIXVEMRMRKERHIHYGEXMSR
N  (IWMKREXMRK E QIQFIV SJ WIRMSV QEREKIQIRX XS FI VIWTSRWMFPI JSV SZIVWIIMRK XLI
EHIUYEXIJYRGXMSRMRKSJXLIWEJIKYEVHMRKW]WXIQ
O %HMWGMTPMREV]QIGLERMWQXSTVSQSXIGSQTPMERGI[MXLTSPMGMIWERHTVSGIHYVIW

P  4YFPMWLIH TSPMGMIW ERH TVSGIHYVIW XS IRGSYVEKI ERH IQTS[IV WXEJJ XS GSQQYRMGEXI XS
WIRMSV PIZIPW [MXLMR XLI JMVQ ER] MWWYI VIPEXMRK XS GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIWXLEXGSRGIVRWXLIQ
)RKEKIQIRXWTIGMJMGWEJIKYEVHWMRXLI[SVOIRZMVSRQIRXQE]MRGPYHI

E  -RZSPZMRK ER EHHMXMSREP TVSJIWWMSREP EGGSYRXERX XS VIZMI[ XLI [SVO HSRI SV SXLIV[MWI
EHZMWIEWRIGIWWEV]
F 'SRWYPXMRKERMRHITIRHIRXXLMVHTEVX]WYGLEWEGSQQMXXIISJMRHITIRHIRXHMVIGXSVWE
TVSJIWWMSREPVIKYPEXSV]FSH]SVERSXLIVTVSJIWWMSREPEGGSYRXERX
G 6SXEXMRKWIRMSVTIVWSRRIP

H (MWGYWWMRKIXLMGEPMWWYIW[MXLXLSWIMRGLEVKISJ GPMIRXKSZIVRERGI
I (MWGPSWMRKXSXLSWIGLEVKIH[MXLGPMIRXKSZIVRERGIXLIREXYVISJWIVZMGIWTVSZMHIHERH
I\XIRXSJJIIWGLEVKIH
J -RZSPZMRKERSXLIVJMVQXSTIVJSVQSVVITIVJSVQTEVXSJXLIIRKEKIQIRX

 (ITIRHMRK SR XLI REXYVI SJ XLI IRKEKIQIRX TVSJIWWMSREP EGGSYRXERXW MR TYFPMG
TVEGXMGIQE]EPWSFIEFPIXSVIP]SRWEJIKYEVHWXLEXXLIGPMIRXLEWMQTPIQIRXIH
7EJIKYEVHW[MXLMRXLIGPMIRXWW]WXIQWERHTVSGIHYVIWQE]MRGPYHI

E  ;LIR E GPMIRX ETTSMRXW E JMVQ MR TYFPMG TVEGXMGI XS TIVJSVQ ER IRKEKIQIRX TIVWSRW
SXLIVXLERQEREKIQIRXVEXMJ]SVETTVSZIXLIETTSMRXQIRX

F 8LIGPMIRXLEWGSQTIXIRXIQTPS]IIWXSQEOIQEREKIVMEPHIGMWMSRW
G  8LI GPMIRX LEW MQTPIQIRXIH MRXIVREP TVSGIHYVIW XLEX IRWYVI SFNIGXMZI GLSMGIW MR
GSQQMWWMSRMRKRSREWWYVERGIIRKEKIQIRXW

H 8LIGPMIRXLEWEGSVTSVEXIKSZIVRERGIWXVYGXYVIXLEXTVSZMHIWETTVSTVMEXISZIVWMKLXERH
GSQQYRMGEXMSRWVIKEVHMRKXLIJMVQWWIVZMGIW

 ;LIVI TVSJIWWMSREP EGGSYRXERXW [MWL XS VIP] SR GPMIRXMQTPIQIRXIH WEJIKYEVHW XLI]
WLSYPHIZEPYEXIXLIWEJIKYEVHWXLI][MWLXSVIP]SRXSHIXIVQMRI[LIXLIVXLSWIWEJIKYEVHW
EVIWYJJMGMIRXERHETTVSTVMEXI8LMWIZEPYEXMSR[MPPZEV]HITIRHMRKSRXLIGMVGYQWXERGIWERH
[MPPFIEJJIGXIHF]QEXXIVWWYGLEWXLIWMKRMJMGERGISJXLITSXIRXMEPXLVIEXERHXLIREXYVISJ
XLIIRKEKIQIRX


 7)'8-32
&),%&-396-249&0-'46%'8-')

1%6/)8-2+463*)77-32%07)6:-')7
;LIRTVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIWSPMGMXRI[[SVOXLVSYKLEHZIVXMWMRK
SV SXLIV JSVQW SJ QEVOIXMRK XLIVI QE] FI TSXIRXMEP XLVIEXW XS GSQTPMERGI [MXL XLI
JYRHEQIRXEP TVMRGMTPIW *SV I\EQTPI E WIPJMRXIVIWX XLVIEX XS GSQTPMERGI [MXL XLI
TVMRGMTPISJTVSJIWWMSREPFILEZMSVQMKLXEVMWIMJWIVZMGIWEGLMIZIQIRXWSVTVSHYGXWEVI
QEVOIXIHMRE[E]XLEXMWMRGSRWMWXIRX[MXLXLEXTVMRGMTPI
7EJIKYEVHWEKEMRWXWYGLEXLVIEXMRGPYHI
E 4VSZMHMRKMRJSVQEXMSRJEMVP]ERHMREQERRIVXLEXMWRSXQMWPIEHMRK

F %ZSMHMRKYRWYFWXERXMEXIHSVHMWTEVEKMRKWXEXIQIRXW
G 'SQTP]MRK[MXLVIPIZERXPE[WVIKYPEXMSRWERHFIWXTVEGXMGI
H 'SRWYPXEXMSR[MXLXLI VIPIZERXTVSJIWWMSREPFSH]
 &IGEYWI RS WEJIKYEVHW [SYPH FI WYJJMGMIRX XS IPMQMREXI XLI XLVIEXW XS GSQTPMERGI
[MXLXLIJYRHEQIRXEPTVMRGMTPIWTVSJIWWMSREPEGGSYRXERXWWLSYPHRSXWSPMGMXGPMIRXWSV
RI[ [SVO IMXLIV HMVIGXP] SV MRHMVIGXP] F] GMVGYPEV EHZIVXMWIQIRX TIVWSREP
GSQQYRMGEXMSR SV MRXIVZMI[ SV F] ER] SXLIV QIERW ERH WIGYVI IMXLIV XLVSYKL XLI
WIVZMGIWSJETIVWSRRSXUYEPMJMIHXSFILMWTEVXRIVSVF]QIERW[LMGLEVIRSXSTIRXSE
TVSJIWWMSREPEGGSYRXERXER][SVO
 -R SVHIV XS IPMQMREXI TSXIRXMEP XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIWXLIWEJIKYEVHWQE]MRGPYHI
E  %ZSMHMRK YWMRK ER] SJ XLI ETTSMRXQIRXW SV E[EVHW SJ REXMSREP ERH PSGEP
MQTSVXERGIJSVTIVWSREPTVSJIWWMSREPEHZERXEKI

F  0MWXMRK MR E HMVIGXSV] MR E [E] XLEX GSYPH RSX VIEWSREFP] FI VIKEVHIH EW E
TVSQSXMSREP EHZIVXMWIQIRX ERH PMQMXMRK XLI IRXVMIW XS REQI EHHVIWW XIPITLSRI
RYQFIV TVSJIWWMSREP HIWGVMTXMSR ERH ER] SXLIV MRJSVQEXMSR RIGIWWEV] XS IREFPI XLI
YWIV SJ XLI HMVIGXSV] XS QEOI GSRXEGX [MXL XLI TIVWSR SV SVKERM^EXMSR XS [LMGL XLI
IRXV]VIPEXIW
G  7XEXMRK REQI TVSJIWWMSREP UYEPMJMGEXMSRW ERH REQI SJ SVKERM^EXMSR SJ EYXLSV SJ
FSSOW SV EVXMGPIW SV MR E PIGXYVI MRXIVZMI[ SV E VEHMS SV XIPIZMWMSR TVSKVEQ SR E
TVSJIWWMSREP WYFNIGX [MXLSYX KMZMRK ER] MRJSVQEXMSR EW XS XLI WIVZMGIW XLEX XLI JMVQ
TVSZMHIW
H +MZMRKXLIREQISJETVSJIWWMSREPEGGSYRXERXMRER]FSSOPIXSVHSGYQIRXMWWYIHMR
GSRRIGXMSR[MXLXVEMRMRKWIQMREVSV[SVOWLST[MXLSYXKMZMRKYRHYITVSQMRIRGI
I 2SXMWWYMRKFSSOPIXXIGLRMGEPMRJSVQEXMSRSVSXLIVHSGYQIRXFIEVMRKXLIREQISJE
TVSJIWWMSREP EGGSYRXERX JSV XLI EWWMWXERGI SJ GPMIRXW I\GITX MR VIWTSRWI XS ER
YRWSPMGMXIHVIUYIWX


J  'SQQYRMGEXMRK ZEGERGMIW JSV WXEJJ XS XLI TYFPMG XLVSYKL ER] QIHMYQ MR [LMGL
GSQTEVEFPIWXEJJZEGERGMIWRSVQEPP]ETTIEVFYXMXWLSYPHRSXGSRXEMRER]TVSQSXMSREP
IPIQIRX
K  %HZIVXMWMRK SV TYFPMGM^MRK SR FILEPJ SJ GPMIRXW TVMQEVMP] JSV WXEJJ [MXLSYX
GSRXEMRMRKER]TVSQSXMSREPIPIQIRX

L  -WWYMRK XS E GPMIRX SV MR VIWTSRWI XS ER YRWSPMGMXIH VIUYIWX XS E RSRGPMIRXE  E
JEGXYEP ERH SFNIGXMZIP] [SVHIH EGGSYRX SJ XLI WIVZMGIW TVSZMHIH ERH F  E HMVIGXSV]
WIXXMRKSYXREQIWSJTEVXRIVWSJJMGIEHHVIWWIWERHREQIWERHEHHVIWWIWSJEWWSGMEXIH
JMVQWERHGSVVIWTSRHIRXW[MXLSYXGSRXEMRMRKER]TVSQSXMSREPIPIQIRX
M  9WMRK WXEXMSRIV] SV REQITPEXI SJ ER EGGITXEFPI TVSJIWWMSREP WXERHEVH GSQTP]MRK
[MXL XLI VIUYMVIQIRXW SJ XLI PE[ EW XS REQIW YWI SJ TVSJIWWMSREP HIWGVMTXMSRW ERH
HIWMKREXSV]PIXXIVWGMXMIWSVGSYRXVMIW[LIVIXLITVEGXMGIMWVITVIWIRXIHERHPSKSX]TI
[MXLSYXQIRXMSRMRKXLIWIVZMGIWTVSZMHIHF]XLITVEGXMGI

N  9WMRK ETTVSTVMEXI RI[WTETIVW SV QEKE^MRIW XS MRJSVQ XLI TYFPMG SJ XLI
IWXEFPMWLQIRX SJ E RI[ TVEGXMGI SJ GLERKIW MR XLI GSQTSWMXMSR SJ E TEVXRIVWLMT SJ
TVSJIWWMSREP EGGSYRXERXW MR TYFPMG TVEGXMGI SV SJ ER] EPXIVEXMSR MR XLI EHHVIWW SJ E
TVEGXMGI[MXLSYXGSRXEMRMRKER]TVSQSXMSREPIPIQIRX

'0-)28%'')48%2')
 &IJSVI EGGITXMRK E RI[ GPMIRX VIPEXMSRWLMT TVSJIWWMSREP EGGSYRXERXW WLSYPH GSRWMHIV
[LIXLIV EGGITXERGI TSWIW ER] XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW
4SXIRXMEP XLVIEXW XS MRXIKVMX] QE] EVMWI JVSQ JSV I\EQTPI UYIWXMSREFPI MWWYIW
EWWSGMEXIH [MXL XLI GPMIRX MXW S[RIVW QEREKIQIRX ERH EGXMZMXMIW  ERH UYIWXMSREFPI
MWWYIWEWWSGMEXIH[MXLRSRGSQTPMERGISJPE[W[MXLVIKEVHXSXLIETTSMRXQIRXJSVXLI
EYHMX IRKEKIQIRX -R WYGL GEWIW XLI XLVIEXW GVIEXIH [SYPH FI WS WMKRMJMGERX XLEX RS
WEJIKYEVH GSYPH VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP %GGSVHMRKP] TVSJIWWMSREP
EGGSYRXERXWWLSYPHSVHMREVMP]HIGPMRIXSIRXIVMRXSXLIGPMIRXVIPEXMSRWLMT

 'PMIRX MWWYIW XLEX GSYPH XLVIEXIR GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW
MRGPYHI JSV I\EQTPI GPMIRX MRZSPZIQIRX MR MPPIKEP EGXMZMXMIW WYGL EW QSRI]
PEYRHIVMRK  HMWLSRIWX] SV UYIWXMSREFPI JMRERGMEP VITSVXMRK TVEGXMGIW -R WYGL GEWIW
XLIXLVIEXWGVIEXIH[SYPHFIWSWMKRMJMGERXXLEXRSWEJIKYEVHGSYPHVIHYGIXLIXLVIEXXS
EREGGITXEFPIPIZIP%GGSVHMRKP]TVSJIWWMSREPEGGSYRXERXWWLSYPHSVHMREVMP]HIGPMRIXS
IRXIVMRXSXLIGPMIRXVIPEXMSRWLMT
8LIWMKRMJMGERGISJER]XLVIEXWWLSYPHFIIZEPYEXIH-JMHIRXMJMIHXLVIEXWEVISXLIVXLER
GPIEVP] MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS VIHYGI
XLIQXSEREGGITXEFPIPIZIP


 %TTVSTVMEXI WEJIKYEVHW QMKLX MRGPYHI SFXEMRMRK ORS[PIHKI ERH YRHIVWXERHMRK SJ XLI
GPMIRXMXWS[RIVWQEREKIVWERHXLSWIVIWTSRWMFPIJSVMXWKSZIVRERGIERHFYWMRIWWEGXMZMXMIW
SV WIGYVMRKXLIGPMIRXWGSQQMXQIRXXS MQTVSZIGSVTSVEXI KSZIVRERGI TVEGXMGIWSV MRXIVREP
GSRXVSPW
 ;LIVI MX MW RSX TSWWMFPI XS VIHYGI XLI XLVIEXW XS ER EGGITXEFPI PIZIP TVSJIWWMSREP
EGGSYRXERXWWLSYPHSVHMREVMP]HIGPMRIXSIRXIVMRXSXLIGPMIRXVIPEXMSRWLMT

 %GGITXERGI HIGMWMSRW WLSYPH FI TIVMSHMGEPP] VIZMI[IH JSV VIGYVVMRK GPMIRX
VIPEXMSRWLMTW

-2(-:-(9%07)6:-')32%2)2+%+)1)28
4VSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIWLSYPHGSRWMHIV[LIXLIVXLIVIEVIXLVIEXWXS
GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW VIWYPXMRK JVSQ LEZMRK MRXIVIWXW MR SV
VIPEXMSRWLMTW [MXL XLI GPMIRX IRXMX] SV MXW TIVWSRRIP *SV I\EQTPI E JEQMPMEVMX] XLVIEX XS
SFNIGXMZMX]QE]EVMWIJVSQJEQMP]SVGPSWITIVWSREPSVFYWMRIWWVIPEXMSRWLMTW
 4VSJIWWMSREP EGGSYRXERXW WLSYPH IZEPYEXIXLI WMKRMJMGERGI SJ MHIRXMJMIH XLVIEXW ERH MJ
XLI] EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH ETTPMIH EW
RIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQE]MRGPYHI

E ;MXLHVE[MRKJVSQXLIIRKEKIQIRXXIEQ
F 7YTIVZMWSV]TVSGIHYVIW
G 8IVQMREXMRKXLIJMRERGMEPSVFYWMRIWWVIPEXMSRWLMTKMZMRKVMWIXSXLIXLVIEX

H (MWGYWWMRKXLIMWWYI[MXLLMKLIVPIZIPWSJQEREKIQIRX[MXLMRXLIJMVQ
(e) Discussing the issue with those responsible for the client’s governance.
4VSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIWLSYPHEKVIIXSTVSZMHISRP]XLSWIWIVZMGIW
XLEX XLI] EVI GSQTIXIRX XS TIVJSVQ &IJSVI EGGITXMRK E WTIGMJMG GPMIRX IRKEKIQIRX
TVSJIWWMSREP EGGSYRXERXW WLSYPH GSRWMHIV [LIXLIV EGGITXERGI TSWIW ER] XLVIEXW XS
GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW *SV I\EQTPI E WIPJMRXIVIWX XLVIEX XS
TVSJIWWMSREPGSQTIXIRGIERHHYIGEVIQE]EVMWIMJXLIIRKEKIQIRXXIEQHSIWRSXTSWWIWW
SVGERRSXEGUYMVIXLIGSQTIXIRGMIWRIGIWWEV]XSTVSTIVP]GEVV]SYXXLIIRKEKIQIRX
 4VSJIWWMSREP EGGSYRXERXW WLSYPH IZEPYEXIXLI WMKRMJMGERGI SJ MHIRXMJMIH XLVIEXW ERH MJ
XLI]EVISXLIVXLERGPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIETTPMIHEWRIGIWWEV]XSVIHYGI
XLIQXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQE]MRGPYHI
E  %GUYMVMRK ER ETTVSTVMEXI YRHIVWXERHMRK SJ XLI REXYVI SJ XLI GPMIRXW FYWMRIWW XLI
GSQTPI\MX]SJMXWSTIVEXMSRWXLIWTIGMJMGVIUYMVIQIRXWSJXLIIRKEKIQIRXERHXLITYVTSWI
REXYVIERHWGSTISJXLI[SVOXSFITIVJSVQIH
F %GUYMVMRKORS[PIHKISJVIPIZERXMRHYWXVMIWSVWYFNIGXQEXXIVW
G 4SWWIWWMRKSVSFXEMRMRKI\TIVMIRGI[MXLVIPIZERXVIKYPEXSV]SVVITSVXMRKVIUYMVIQIRXW

H %WWMKRMRKWYJJMGMIRXWXEJJ[MXLXLIRIGIWWEV]GSQTIXIRGMIW
I 9WMRKI\TIVXW[LIVIRIGIWWEV]


J %KVIIMRKSREVIEPMWXMGXMQIJVEQIJSVXLITIVJSVQERGISJXLIIRKEKIQIRX
K  'SQTP]MRK [MXL UYEPMX] GSRXVSP TSPMGMIW ERH TVSGIHYVIW HIWMKRIH XS TVSZMHI E
VIEWSREFPI EWWYVERGI XLEX WTIGMJMG IRKEKIQIRXW EVI EGGITXIH SRP] [LIR XLI] GER FI
TIVJSVQIHGSQTIXIRXP]

97)3*)<4)687
 4VSJIWWMSREP EGGSYRXERXW WLSYPH FI MR E TSWMXMSR XS GSQTIXIRXP] TIVJSVQ [LEXIZIV
IRKEKIQIRXWXLI]YRHIVXEOI;LIVIXLMWMWRSXXLIGEWIXLIVIMWEGPIEVXLVIEXXSGSQTPMERGI
[MXL XLI JYRHEQIRXEP TVMRGMTPIW *SV I\EQTPI E WIPJMRXIVIWX XLVIEX XS TVSJIWWMSREP
GSQTIXIRGI ERH HYI GEVI QE] EVMWI [LIR TVSJIWWMSREP EGGSYRXERXW EGGITX ER
IRKEKIQIRX [MXLSYX LEZMRK XLI RIGIWWEV] WTIGMEPMWX ORS[PIHKI JSV XLI GSQTIXIRX
TIVJSVQERGISJXLEXIRKEKIQIRX
7YGLEXLVIEXQE]FIQMXMKEXIHSVVIHYGIHXSEREGGITXEFPIPIZIPF]WIIOMRKEHZMGISV
EWWMWXERGIJVSQI\TIVXWWYGLEWSXLIVTVSJIWWMSREPEGGSYRXERXWPE[]IVWEGXYEVMIWIRKMRIIVW
ERHZEPYIVW4VSJIWWMSREPEGGSYRXERXWWLSYPHIZEPYEXI[LIXLIVMXMWETTVSTVMEXIJSVXLIQXS
VIP] SR XLI EHZMGI SV [SVO SJ WYGL I\TIVXW LEZMRK VIKEVH XS JEGXSVW WYGL EW VITYXEXMSR
I\TIVXMWI VIWSYVGIW EZEMPEFPI ERH ETTPMGEFPI TVSJIWWMSREP ERH IXLMGEP WXERHEVHW 7YGL
MRJSVQEXMSRQE]FIKEMRIHJVSQTVMSVEWWSGMEXMSR[MXLXLII\TIVXSVJVSQGSRWYPXMRKSXLIVW

+-*87%2(,374-8%0-8=
4VSJIWWMSREPEGGSYRXERXWQE]JMRHXLIQWIPZIWMRWMXYEXMSRW[LIVIXLI]SVMQQIHMEXI
SVGPSWIJEQMP]QIQFIVWEVISJJIVIHKMJXWERHLSWTMXEPMX]7YGLSJJIVWSVHMREVMP]KMZIVMWIXS
XLVIEXWXSGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIW*SVI\EQTPIWIPJMRXIVIWXXLVIEXW
XS SFNIGXMZMX] QE] EVMWI JVSQ XLI XIQTXEXMSR XS EGGITX KMJXW MRXMQMHEXMSR XLVIEXW XS
SFNIGXMZMX]QE]VIWYPXJVSQXLITSWWMFMPMX]SJWYGLSJJIVWFIMRKQEHITYFPMG
8LIWMKRMJMGERGISJWYGLXLVIEXW[MPPHITIRHSRXLIREXYVIZEPYIERHMRXIRXFILMRHXLI
SJJIV ;LIVI SJJIVW SJ KMJXW SV LSWTMXEPMX] [LMGL E VIEWSREFPI ERH MRJSVQIH XLMVH TEVX]
LEZMRKORS[PIHKISJEPPVIPIZERXMRJSVQEXMSR[SYPHGSRWMHIVMRWMKRMJMGERXEVIQEHIMRER
STIRQERRIVTVSJIWWMSREPEGGSYRXERXWQE]GSRGPYHIXLEXXLISJJIVWEVIQEHIMRXLIRSVQEP
GSYVWI SJ FYWMRIWW [MXLSYX XLI WTIGMJMG MRXIRX XS MRJPYIRGI HIGMWMSR QEOMRK SV XS SFXEMR
MRJSVQEXMSR-RWYGLGEWIWXLI]QE]KIRIVEPP]GSRGPYHIXLEXXLIVIMWRSWMKRMJMGERXXLVIEXXS
GSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIW
-JIZEPYEXIHXLVIEXWEVISXLIVXLERGPIEVP]MRWMKRMJMGERXTVSJIWWMSREPEGGSYRXERXWWLSYPH
RSXEGGITXWYGLSJJIVW

-14)6732%8-32
 )\EQTPIW SJGMVGYQWXERGIW XLEX QE] KMZI VMWI XS XLVIEXW XS GSQTPMERGI [MXL XLI
JYRHEQIRXEPTVMRGMTPIWMRGPYHIFYXEVIRSXPMQMXIHXS
E %PPS[MRKER]TIVWSRXSTVEGXMGIMRLMWREQIEWEGLEVXIVIHEGGSYRXERXYRPIWWWYGL
TIVWSR MW EPWS E TVSJIWWMSREP EGGSYRXERX ERH MW MR TEVXRIVWLMT [MXL SV IQTPS]IH F]
LMQ

F  6ITSVXMRK SR ER] EWWYVERGI IRKEKIQIRX XLEX LEW RSX FIIR TIVJSVQIH IRXMVIP]
YRHIVXLITIVWSREPWYTIVZMWMSRSJLMQWIPJEQIQFIVSJLMWWXEJJERSXLIVQIQFIVSJ
XLI-RWXMXYXISVLMWTEVXRIV


G %PPS[MRKETIVWSRRSXFIMRKEQIQFIVSJXLI-RWXMXYXISVEQIQFIVRSXFIMRKLMW
TEVXRIV XS WMKR SR LMW FILEPJ SV SR FILEPJ SJ LMW JMVQ ER] VITSVX SR ER] EWWYVERGI
IRKEKIQIRXERH
H  (SMRK YRHIV XLI KYMWI SV XLVSYKL XLI QIHMYQ SJ E GSQTER] SV JMVQ ER]XLMRK
[LMGL LI MW RSX EPPS[IH XS HS EW ER MRHMZMHYEP 7YGL GMVGYQWXERGIW QE] KMZI VMWI XS
XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW %GGSVHMRKP] TVSJIWWMSREP
EGGSYRXERXWWLSYPHRSXEPPS[WYGLGMVGYQWXERGIWLETTIRMRK


 7)'8-32
'32*0-'873*-28)6)787
4VSJIWWMSREPEGGSYRXERXWWLSYPHXEOIVIEWSREFPIWXITWXSEZSMHGMVGYQWXERGIWXLEXGSYPH
TSWIEGSRJPMGXSJMRXIVIWXW7YGLGMVGYQWXERGIWQE]KMZIVMWIXSXLVIEXWXSGSQTPMERGI[MXL
XLIJYRHEQIRXEPTVMRGMTPIW*SVI\EQTPIEWIPJMRXIVIWXXLVIEXXSSFNIGXMZMX] QE]EVMWI[LIR
TVSJIWWMSREP EGGSYRXERXW GSQTIXI HMVIGXP] [MXL E GPMIRX SV LEZI NSMRX ZIRXYVIW SV WMQMPEV
EVVERKIQIRXW[MXLQENSVGSQTIXMXSVWSJXLEXGPMIRX%WIPJMRXIVIWXXLVIEXXSSFNIGXMZMX]QE]
EPWSEVMWI[LIRTVSJIWWMSREPEGGSYRXERXWTIVJSVQWIVZMGIWJSVGPMIRXW[LSWIMRXIVIWXWEVIMR
GSRJPMGX[MXLIEGLSXLIVMRVIPEXMSRXSXLIQEXXIVSVXVERWEGXMSRMRUYIWXMSR

4VSJIWWMSREPEGGSYRXERXWWLSYPHIZEPYEXIXLIWMKRMJMGERGISJXLVIEXW)ZEPYEXMSRMRGPYHIW
GSRWMHIVMRK FIJSVI EGGITXMRK SV GSRXMRYMRK E RI[ GPMIRX VIPEXMSRWLMT SV WTIGMJMG
IRKEKIQIRX[LIXLIVXLI]LEZIER]VIPEXMSRWLMTW[MXLGPMIRXWSVXLMVHTEVXMIWXLEXGSYPHKMZI
VMWIXSXLVIEXW-JXLVIEXWEVISXLIVXLERGPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIH
ERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP

7EJIKYEVHW[MPPSVHMREVMP]MRGPYHITVSJIWWMSREPEGGSYRXERXW
E 2SXMJ]MRKEPPVIPIZERXTEVXMIWXLEXXLI]EVIEGXMRKJSVX[SSVQSVITEVXMIWMRVIWTIGXSJE
QEXXIV[LIVIXLIMVVIWTIGXMZIMRXIVIWXWEVIMRGSRJPMGXERHSFXEMRMRKXLIMVGSRWIRXXLEXXLI]
QE]WSEGX

F 2SXMJ]MRKEPPVIPIZERXTEVXMIWXLEXXLI]LEZIVIPEXMSRWLMTW[MXLGPMIRXWSVXLMVHTEVXMIWXLEX
GSYPHKMZIVMWIXSGSRJPMGXWSJMRXIVIWX

7YGLWEJIKYEVHWQE]LS[IZIVFITVIGPYHIHMRWSQIGMVGYQWXERGIW HYIXSXLIGSRWXVEMRXW
SJGSRJMHIRXMEPMX]
%HHMXMSREPWEJIKYEVHWMRGPYHI

E 8LIYWISJWITEVEXIIRKEKIQIRXXIEQW[MXLWITEVEXIMRXIVREPVITSVXMRKPMRIW
F  4VSGIHYVIW XS TVIZIRX EGGIWW XS MRJSVQEXMSR IK WXVMGX TL]WMGEP WITEVEXMSR SJ WYGL
XIEQWGSRJMHIRXMEPERHWIGYVIHEXEJMPMRK 
G 'PIEVKYMHIPMRIWJSVIRKEKIQIRXTIVWSRRIPSRMWWYIWSJWIGYVMX]ERHGSRJMHIRXMEPMX]
H 6IKYPEVVIZMI[SJXLIETTPMGEXMSRSJWEJIKYEVHWF]EWIRMSVMRHMZMHYEPRSXMRZSPZIH[MXL
IMXLIVGPMIRXIRKEKIQIRX
I 4SPMGMIWERHTVSGIHYVIWJSVHIEPMRK[MXLGSRJPMGXWSJMRXIVIWX


;LIVIEXLVIEXGERRSXFIIPMQMREXIHSVVIHYGIHXSEREGGITXEFPIPIZIPXLVSYKLXLI
ETTPMGEXMSR SJ WEJIKYEVHW TVSJIWWMSREP EGGSYRXERXW WLSYPH GSRGPYHI XLEX MX MW RSX
ETTVSTVMEXI XS EGGITX E WTIGMJMG IRKEKIQIRX SV XLEX XLI] WLSYPH VIWMKR JVSQ SRI SV
QSVIGSRJPMGXMRKIRKEKIQIRXW

;LIVITVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGILEZIVIUYIWXIHGSRWIRXJVSQE
GPMIRXXSEGXJSVERSXLIVTEVX]MRVIWTIGXSJEQEXXIV[LIVIXLIVIWTIGXMZIMRXIVIWXWEVI
MRGSRJPMGXERHXLEXGSRWIRXLEWFIIRVIJYWIHF]XLIGPMIRXXLIRXLI]QYWXRSXGSRXMRYI
XSEGXJSVXLISXLIVTEVX]MRXLIQEXXIVKMZMRKVMWIXSXLIGSRJPMGXSJMRXIVIWX


 7)'8-32
',%2+)7-2463*)77-32%0%443-281)28

6)'966-2+;36/
% TVSJIWWMSREPEGGSYRXERX [LSMWEWOIHXSVITPEGI ERSXLIV TVSJIWWMSREPEGGSYRXERXSV
[LS MW GSRWMHIVMRK XIRHIVMRK JSV ER IRKEKIQIRX GYVVIRXP] LIPH F] ERSXLIV TVSJIWWMSREP
EGGSYRXERXWLSYPHHIXIVQMRI[LIXLIVXLIVIEVIER]TVSJIWWMSREPSV SXLIV VIEWSRWWYGL EW
GMVGYQWXERGIW XLEX XLVIEXIR GSQTPMERGI [MXL XLIJYRHEQIRXEP TVMRGMTPIW JSV RSX EGGITXMRK
XLI IRKEKIQIRX *SV I\EQTPI XLIVI QE] FI E XLVIEX XS TVSJIWWMSREP GSQTIXIRGI ERH HYI
GEVIMJ ETVSJIWWMSREP EGGSYRXERXEGGITXWXLI IRKEKIQIRX FIJSVI ORS[MRK EPP XLITIVXMRIRX
JEGXW

 8LI WMKRMJMGERGI SJ XLI XLVIEXW WLSYPH FI IZEPYEXIH (ITIRHMRK SR XLI REXYVI SJ XLI
IRKEKIQIRX XLMW QE] VIUYMVI HMVIGX GSQQYRMGEXMSR [MXL XLI I\MWXMRK EGGSYRXERX XS
IWXEFPMWL XLIJEGXWERH GMVGYQWXERGIW FILMRH XLI TVSTSWIH GLERKI WS XLEX XLI TVSJIWWMSREP
EGGSYRXERX GER HIGMHI [LIXLIV MX [SYPH FI ETTVSTVMEXI XS EGGITX XLI IRKEKIQIRX *SV
I\EQTPIXLIETTEVIRXVIEWSRWJSVXLIGLERKIMRETTSMRXQIRXQE]RSXJYPP]VIJPIGXXLIJEGXW
ERH QE] MRHMGEXI HMWEKVIIQIRXW [MXL XLI I\MWXMRK EGGSYRXERX XLEX QE] MRJPYIRGI XLI
HIGMWMSREWXS[LIXLIVXSEGGITXXLIETTSMRXQIRX

)\MWXMRKEGGSYRXERXWEVIEPWSFSYRHF]GSRJMHIRXMEPMX]8LII\XIRXXS[LMGLXLI]GERERH
WLSYPH HMWGYWW XLI EJJEMVW SJ XLIMV GPMIRXW [MXL TVSTSWIH EGGSYRXERXW [MPP HITIRH SR XLI
REXYVISJXLIIRKEKIQIRXERHSR
(a) Whether the client’s permission to do so has been obtained; or
F 8LIPIKEPSVIXLMGEPVIUYMVIQIRXWVIPEXMRKXSWYGLGSQQYRMGEXMSRWERHHMWGPSWYVI[LMGL
QE]ZEV]F]NYVMWHMGXMSR

-RXLIEFWIRGISJWTIGMJMGMRWXVYGXMSRWF]XLIMVGPMIRXWI\MWXMRKEGGSYRXERXWWLSYPHRSX
ordinarily volunteer information about the clients’ affairs. Circumstances where it may be
ETTVSTVMEXI XS HMWGPSWI GSRJMHIRXMEP MRJSVQEXMSR EVI WIX SYX MR 7IGXMSR  SJ 4EVX % SJ XLMW
'SHI
-JMHIRXMJMIHXLVIEXWEVISXLIVXLERGPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIH
ERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP

7YGLWEJIKYEVHWMRGPYHI
(a) Discussing the client’s affairs fully and freely with the existMRKEGGSYRXERX

F %WOMRKI\MWXMRKEGGSYRXERXWXSTVSZMHIMRJSVQEXMSRSRER]JEGXWSVGMVGYQWXERGIW
[MXLMR XLIMV ORS[PIHKI XLEX MR XLIMV STMRMSR XLI TVSTSWIH EGGSYRXERXW WLSYPH FI
E[EVISJFIJSVIHIGMHMRK[LIXLIVSVRSXXSEGGITXXLIIRKEKIQIRX
G ;LIRVITP]MRKXSVIUYIWXWXSWYFQMXXIRHIVWWXEXMRKMRXLIXIRHIVXLEXFIJSVIEGGITXMRK
XLIIRKEKIQIRXGSRXEGX[MXLXLII\MWXMRKEGGSYRXERX[MPPFIVIUYIWXIHWSXLEXMRUYMVMIWQE]
FI QEHI EW XS [LIXLIV XLIVI EVI ER] TVSJIWWMSREP SV SXLIV VIEWSRW [L] XLI ETTSMRXQIRX
WLSYPHRSXFIEGGITXIH
4.7 Professional accountants will ordinarily need to obtain the client’s permission,
TVIJIVEFP]MR[VMXMRKXSMRMXMEXIHMWGYWWMSR[MXLI\MWXMRKEGGSYRXERXW3RGIXLEXTIVQMWWMSR


MW SFXEMRIH I\MWXMRK EGGSYRXERXW WLSYPH GSQTP] [MXL VIPIZERX PIKEP ERH SXLIV VIKYPEXMSRW
KSZIVRMRKWYGLVIUYIWXW;LIVII\MWXMRKEGGSYRXERXWTVSZMHIMRJSVQEXMSRXLI]WLSYPHHSWS
LSRIWXP]ERHYREQFMKYSYWP]-JXLITVSTSWIHEGGSYRXERXWEVIYREFPIXSGSQQYRMGEXI[MXL
XLII\MWXMRKEGGSYRXERXWXLI]WLSYPHXV]XSSFXEMRMRJSVQEXMSREFSYXER]TSWWMFPIXLVIEXWF]
SXLIVQIERW
 ;LIVI XLI XLVIEXW GERRSX FI IPMQMREXIH SV VIHYGIH XS ER EGGITXEFPI PIZIP XLVSYKL XLI
ETTPMGEXMSRSJWEJIKYEVHWTVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGIWLSYPHYRPIWW XLIVIMW
WEXMWJEGXMSR EW XS RIGIWWEV] JEGXW F] SXLIV QIERW GSRWMHIV [LIXLIV XS HIGPMRI XLI
IRKEKIQIRX

38,)6;36/
 4VSJIWWMSREP EGGSYRXERXW QE] FI EWOIH XS YRHIVXEOI [SVO XLEX MW GSQTPIQIRXEV] SV
EHHMXMSREP XS XLI [SVO SJ ER I\MWXMRK EGGSYRXERX 7YGL GMVGYQWXERGIW QE] KMZI VMWI XS
TSXIRXMEPXLVIEXWXSTVSJIWWMSREPGSQTIXIRGIERHHYIGEVIVIWYPXMRKJVSQJSVI\EQTPIEPEGO
SJSVMRGSQTPIXIMRJSVQEXMSR7EJIKYEVHWEKEMRWXWYGLXLVIEXWMRGPYHI RSXMJ]MRKXLII\MWXMRK
EGGSYRXERX SJ XLI TVSTSWIH [SVO [LMGL [SYPH KMZI XLI I\MWXMRK EGGSYRXERX XLI
STTSVXYRMX]XSTVSZMHIER]VIPIZERXMRJSVQEXMSRRIIHIHJSVXLITVSTIVGSRHYGXSJXLI
[SVO


 7)'8-32
7)'32(34-2-327
 7MXYEXMSRW [LIVI TVSJIWWMSREP EGGSYRXERXW MR TYFPMG TVEGXMGI EVI EWOIH XS TVSZMHI E
[VMXXIR STMRMSR SR XLIETTPMGEXMSR SJEGGSYRXMRKEYHMXMRK VITSVXMRK SV SXLIV WXERHEVHW SV
TVMRGMTPIW XS WTIGMJMG GMVGYQWXERGIW SV XVERWEGXMSRW F] SV SR FILEPJ SJ E GSQTER] SV ER
IRXMX] XLEX MW RSX ER I\MWXMRK GPMIRX QE] KMZI VMWI XS XLVIEXW XS GSQTPMERGI [MXL XLI
JYRHEQIRXEPTVMRGMTPIW*SVI\EQTPIXLIVIQE]FIEXLVIEXXSTVSJIWWMSREPGSQTIXIRGIERH
HYI GEVI MR GMVGYQWXERGIW [LIVIXLI WIGSRH STMRMSR MW RSX FEWIH SRXLI WEQI WIX SJJEGXW
XLEX[IVIQEHIEZEMPEFPIXSXLII\MWXMRKEGGSYRXERXSVMWFEWIHSRMREHIUYEXIIZMHIRGI8LI
WMKRMJMGERGISJXLIXLVIEX[MPPHITIRHSRXLIGMVGYQWXERGIWSJXLIVIUYIWXERHEPPXLISXLIV
EZEMPEFPIJEGXWERHEWWYQTXMSRWVIPIZERXXSXLII\TVIWWMSRSJETVSJIWWMSREPNYHKQIRX

 ;LIR EWOIH XS TVSZMHI WYGL ER STMRMSR TVSJIWWMSREP EGGSYRXERXW WLSYPH IZEPYEXI XLI
WMKRMJMGERGISJXLIXLVIEXWERHMJXLI]EVISXLIVXLERGPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPH
FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS VIHYGI XLIQ XS ER EGGITXEFPI PIZIP 7YGL
WEJIKYEVHW [MPP SVHMREVMP] MRGPYHI WIIOMRK GPMIRX TIVQMWWMSR XS GSRXEGX XLI I\MWXMRK
EGGSYRXERXHIWGVMFMRKXLIPMQMXEXMSRWWYVVSYRHMRKER]STMRMSRMRGSQQYRMGEXMSRW[MXLXLI
GPMIRXERHTVSZMHMRKXLII\MWXMRKEGGSYRXERX[MXLEGST]SJXLISTMRMSR

-JXLIGSQTER]SVIRXMX]WIIOMRKXLISTMRMSR[MPPRSXTIVQMXGSQQYRMGEXMSR[MXL
XLII\MWXMRKEGGSYRXERXTVSJIWWMSREPEGGSYRXERXWWLSYPHRSXTVSZMHIWYGLSTMRMSR


 7)'8-32
*))7%2(38,)68=4)73*6)192)6%8-32
 ;LIR IRXIVMRK MRXS RIKSXMEXMSRW VIKEVHMRK TVSJIWWMSREP ERH FYWMRIWW VIPEXMSRWLMTW
TVSJIWWMSREP EGGSYRXERXW QE] UYSXI [LEXIZIV JII XLI] HIIQ XS FI ETTVSTVMEXI 8LI JEGX
XLEX SRI TVSJIWWMSREP EGGSYRXERX QE] UYSXI E JII PS[IV XLER ERSXLIV MW RSX MR MXWIPJ
YRIXLMGEP YRPIWW XLEX ERSXLIV TVSJIWWMSREP EGGSYRXERX WYGGIIHW SRI TVSJIWWMSREP
EGGSYRXERX MR ER EYHMX IRKEKIQIRX 2IZIVXLIPIWW XLIVI QE] FI XLVIEXW XS GSQTPMERGI
[MXL XLI JYRHEQIRXEP TVMRGMTPIW EVMWMRK JVSQ XLI PIZIP SJ JIIW UYSXIH *SV I\EQTPI XLIVI
QE]FIEWIPJMRXIVIWXXLVIEXXSTVSJIWWMSREPGSQTIXIRGIERHHYIGEVIMJXLIJIIUYSXIHMW WS
PS[XLEXMXQE]FIHMJJMGYPXXSTIVJSVQXLIIRKEKIQIRXWEXMWJEGXSVMP]JSVXLEXTVMGI

8LIWMKRMJMGERGISJWYGLXLVIEXW[MPPHITIRHSRJEGXSVWWYGLEWXLIPIZIPSJJIIUYSXIH
XLIWIVZMGIWXS[LMGLMXETTPMIWERHXLIEZEMPEFMPMX]SJGSQTEVMWSR[MXL SXLIVUYSXIW-RZMI[
SJ XLIWI TSXIRXMEP XLVIEXW WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS
VIHYGIXLIQXSEREGGITXEFPIPIZIP7EJIKYEVHW[LMGLQE]FIEHSTXIHMRGPYHI
E  1EOMRK GPMIRXW E[EVI SJ XLI XIVQW SJ XLI IRKEKIQIRX ERH MR TEVXMGYPEV XLI FEWMW SR
[LMGLJIIWEVIGLEVKIHERH[LMGLWIVZMGIWEVIGSZIVIHF]XLIUYSXIHJII

F %WWMKRMRKETTVSTVMEXIXMQIERHUYEPMJMIHWXEJJXSXLIXEWOERH
G  2SX UYSXMRK JII PS[IV XLER XLI QMRMQYQ JII MJ ER] VIGSQQIRHIH F] XLI
VIWTIGXMZI1IQFIV&SH]SJ7%*%
'SRXMRKIRXJIIWEVI[MHIP]YWIHJSVGIVXEMRX]TIWSJRSREWWYVERGIIRKEKIQIRXW8LI]
QE]LS[IZIVKMZIVMWIXSXLVIEXWXSGSQTPMERGI[MXLXLIJYRHEQIRXEPTVMRGMTPIWMRGIVXEMR
GMVGYQWXERGIW *SV I\EQTPI XLIVI QE] FI E WIPJMRXIVIWX XLVIEX XS SFNIGXMZMX] [LIR E
GSRXMRKIRX JII MW EKVIIH SR FYX MW RSX GSRWMHIVIH RSVQEP TVSJIWWMSREP SV FYWMRIWW
TVEGXMGI JSV XLI X]TI SJ IRKEKIQIRX MR UYIWXMSR -R WYGL GEWIW XLI XLVIEXW GVIEXIH
[SYPH FI WS WMKRMJMGERX XLEX RS WEJIKYEVH GSYPH VIHYGI XLI XLVIEX XS ER EGGITXEFPI
PIZIP%GGSVHMRKP]TVSJIWWMSREPEGGSYRXERXWWLSYPHSVHMREVMP]HIGPMRIXSIRXIVMRXSXLI
GPMIRX VIPEXMSRWLMT YRPIWW E GSRXMRKIRX JII MW GSRWMHIVIH RSVQEP TVSJIWWMSREP SV
FYWMRIWW TVEGXMGI JSV XLI X]TI SJ IRKEKIQIRX MR UYIWXMSR ERH MW TIVQMXXIH F] XLI
VIWTIGXMZI1IQFIV&SH]SJ7%*%
8LIWMKRMJMGERGISJXLVIEXWVIJIVVIHXSMR7IGXMSR[MPPHITIRHSRJEGXSVWMRGPYHMRK
E 8LIHIKVIISJSFNIGXMZMX]VIUYMVIHJSVXLIIRKEKIQIRX
F 8LIVERKISJTSWWMFPIJIIEQSYRXW
G 8LIFEWMWJSVHIXIVQMRMRKXLIJII
H  ;LIXLIV XLI SYXGSQI SV VIWYPX SJ XLI XVERWEGXMSR MW XS FI VIZMI[IH F] ER MRHITIRHIRX
XLMVHTEVX]
8LI WMKRMJMGERGI SJ WYGL XLVIEXW WLSYPH FI IZEPYEXIH ERH MJ XLI] EVI SXLIV XLER GPIEVP]
MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS IPMQMREXI SV
VIHYGIXLIQXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI


E %REHZERGI[VMXXIREKVIIQIRX[MXLXLIGPMIRXEWXSXLIFEWMWSJVIQYRIVEXMSR
F  (MWGPSWYVI SJ XLI [SVO XLI TVSJIWWMSREP EGGSYRXERXW LEZI HSRI ERH XLI FEWMW SJ
VIQYRIVEXMSRJSVER]HSGYQIRXXLI]LEZITVITEVIHMRGSRXIQTPEXMSRXLEXEXLMVHTEVX]QE]
[MXLXLIMVEKVIIQIRX VIP]SRMX
G 5YEPMX]GSRXVSPTSPMGMIWERHTVSGIHYVIW
H 6IZMI[SJXLI[SVOHSRIF]ERSFNIGXMZIXLMVHTEVX]

 -R GIVXEMR GMVGYQWXERGIW TVSJIWWMSREP EGGSYRXERXW QE] VIGIMZI VIJIVVEP JIIW SV
GSQQMWWMSRW VIPEXMRK XSXLIMV GPMIRXW*SV I\EQTPI[LIVI XLI] HS RSX XLIQWIPZIW TVSZMHI
XLI WTIGMJMG WIVZMGI VIUYMVIH XLI] QE] VIGIMZI E JII JSV VIJIVVMRK E GSRXMRYMRK GPMIRX XS
ERSXLIVTVSJIWWMSREPEGGSYRXERXMRTYFPMGTVEGXMGISVSXLIVI\TIVX4VSJIWWMSREPEGGSYRXERXW
QE] VIGIMZI GSQQMWWMSRW JVSQ XLMVH TEVXMIW IK WSJX[EVI ZIRHSVW  MR GSRRIGXMSR [MXL
WEPIWSJKSSHWSVWIVZMGIWXSEGPMIRX%GGITXMRKWYGLVIJIVVEPJIIW SVGSQQMWWMSRWQE]KMZI
VMWIXSWIPJMRXIVIWXXLVIEXWXSSFNIGXMZMX]ERHTVSJIWWMSREPGSQTIXIRGIERHHYIGEVI

4VSJIWWMSREPEGGSYRXERXWQE]EPWSTE]VIJIVVEPJIIWXSSFXEMRGPMIRXWJSVI\EQTPI[LIVI
XLI GPMIRXW GSRXMRYI EW GPMIRXW SJ SXLIV TVSJIWWMSREP EGGSYRXERXW FYX VIUYMVI WTIGMEPMWX
WIVZMGIWRSXSJJIVIHF]XLII\MWXMRKEGGSYRXERXW8LITE]QIRXSJWYGLVIJIVVEPJIIWQE]EPWS
KMZIVMWIXSWIPJMRXIVIWXXLVIEXWXSSFNIGXMZMX]ERHTVSJIWWMSREPGSQTIXIRGIERHHYIGEVI

 4VSJIWWMSREP EGGSYRXERXW WLSYPH RSX TE] VIJIVVEP JIIW SV VIGIMZI WYGL JIIW SV
GSQQMWWMSRW
 4VSJIWWMSREP EGGSYRXERXW QE] TYVGLEWI EPP SV TEVX SJ ER EGGSYRXMRK TVEGXMGI [MXL XLI
TVSZMWS XLEX TE]QIRXW [MPP FI QEHIXS MRHMZMHYEPW JSVQIVP] IRKEKIH MR XLI TVEGXMGI SV XS
XLIMVLIMVWSVIWXEXIW7YGLTE]QIRXWEVIRSXVIKEVHIHEWGSQQMWWMSRWSVVIJIVVEPJIIWJSVXLI
TYVTSWISJTEVEKVETL –EFSZI


 7)'8-32
'9783(=3*'0-)28%77)87
 4VSJIWWMSREP EGGSYRXERXW WLSYPHEWWYQI GYWXSH] SJ GPMIRX QSRMIW SV SXLIV EWWIXW SRP]
[LIVITIVQMXXIHXSHSWSF]PE[ERHLEZMRKVIKEVHXSER]EHHMXMSREPPIKEPHYXMIWMQTSWIH
SRTVSJIWWMSREPEGGSYRXERXWMRTYFPMGTVEGXMGILSPHMRKWYGLEWWIXW

 8LI LSPHMRK SJ GPMIRX EWWIXW KMZIW VMWI XS XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIW JSV I\EQTPI XLIVI QE] FI E WIPJMRXIVIWX XLVIEX XS MRXIKVMX] SV TVSJIWWMSREP
FILEZMSV EVMWMRK JVSQ LSPHMRK GPMIRX EWWIXW 8S WEJIKYEVH EKEMRWX WYGL XLVIEXW
TVSJIWWMSREP EGGSYRXERXW IRXVYWXIH [MXL QSRI] SV SXLIV EWWIXW  FIPSRKMRK XS SXLIVW
WLSYPH
E /IITWYGLEWWIXWWITEVEXIP]JVSQTIVWSREPSVJMVQEWWIXW

F 9WIWYGLEWWIXWSRP]JSVXLITYVTSWIJSV[LMGLXLI]EVIMRXIRHIH
G  %X EPP XMQIW FI VIEH] XS EGGSYRX JSV XLSWI EWWIXW XS ER] TIVWSRW IRXMXPIH XS WYGL
EGGSYRXMRKERH

H  'SQTP] [MXL EPP VIPIZERX PE[ ERH VIKYPEXMSRW VIPIZERX XS XLI LSPHMRK SJ ERH
EGGSYRXMRKJSVWYGLEWWIXW
-REHHMXMSRTVSJIWWMSREPEGGSYRXERXWWLSYPHFIE[EVISJXLVIEXWXSGSQTPMERGI[MXLXLI
JYRHEQIRXEPTVMRGMTPIWXLVSYKLEWWSGMEXMSR[MXLWYGLEWWIXWJSVI\EQTPIMJXLIEWWIXW[IVI
JSYRH XS HIVMZI JVSQ MPPIKEP EGXMZMXMIW WYGL EW QSRI] PEYRHIVMRK %W TEVX SJ GPMIRX ERH
IRKEKIQIRXEGGITXERGITVSGIHYVIWJSVWYGLWIVZMGIWTVSJIWWMSREPEGGSYRXERXWWLSYPHQEOI
ETTVSTVMEXI IRUYMVMIW EFSYX XLI WSYVGI SJ WYGL EWWIXW ERH WLSYPH GSRWMHIV XLIMV PIKEP ERH
VIKYPEXSV] SFPMKEXMSRW 8LI] QE] EPWS GSRWMHIV WIIOMRK PIKEP EHZMGI -J XLI TVSJIWWMSREP
EGGSYRXERXWEJXIVIRUYMVMIWSVPIKEPEHZMGIJMRHXLEXQSRI]SVSXLIVEWWIXWFIPSRKMRK
XSSXLIVW[IVIHIVMZIHJVSQMPPIKEPEGXMZMXMIWXLI]WLSYPHRSXLSPHWYGLEWWIXW


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SJEWWYVERGIXIEQWJMVQWERH[LIRETTPMGEFPIRIX[SVOJMVQWFIMRHITIRHIRXSJEWWYVERGI
GPMIRXW

%WWYVERGIIRKEKIQIRXWEVIMRXIRHIHXSIRLERGIXLIGVIHMFMPMX]SJMRJSVQEXMSREFSYXE
WYFNIGX QEXXIV F] IZEPYEXMRK [LIXLIV XLI WYFNIGX QEXXIV GSRJSVQW MR EPP QEXIVMEP VIWTIGXW
[MXLWYMXEFPIGVMXIVME8LI-7%)MWWYIHF]-%77&HIWGVMFIWXLISFNIGXMZIWERHIPIQIRXWSJ
EWWYVERGI IRKEKIQIRXW XS TVSZMHI IMXLIV E LMKL SV E QSHIVEXI PIZIP SJ EWWYVERGI 8LI
-%77&LEWEPWSMWWYIHWTIGMJMGWXERHEVHWJSVGIVXEMREWWYVERGIIRKEKIQIRXW*SVI\EQTPI
-7%W EW EHSTXIHF] XLI VIWTIGXMZI 1IQFIV &SH] SJ 7%*% TVSZMHI WTIGMJMG WXERHEVHW JSV
EYHMXLMKLPIZIPEWWYVERGI ERHVIZMI[QSHIVEXIPIZIPEWWYVERGI SJJMRERGMEPWXEXIQIRXW
4EVEKVETLWXLVSYKLEVIXEOIRJVSQXLI-7%)ERHHIWGVMFIXLIREXYVISJEREWWYVERGI
IRKEKIQIRX 8LIWI TEVEKVETLW EVI TVIWIRXIH LIVI SRP] XS HIWGVMFI XLI REXYVI SJ ER
EWWYVERGIIRKEKIQIRX8SSFXEMREJYPPYRHIVWXERHMRKSJXLISFNIGXMZIWERHIPIQIRXWSJER
EWWYVERGIIRKEKIQIRXMXMWRIGIWWEV]XSVIJIVXSXLIJYPPXI\XGSRXEMRIHMRXLI-7%)

;LIXLIVETEVXMGYPEVIRKEKIQIRXMWEREWWYVERGIIRKEKIQIRX[MPPHITIRHYTSR[LIXLIV
MXI\LMFMXWEPPXLIJSPPS[MRKIPIQIRXW

E %XLVIITEVX]VIPEXMSRWLMTMRZSPZMRK
M %TVSJIWWMSREPEGGSYRXERX
MM %VIWTSRWMFPITEVX]ERH

MMM %RMRXIRHIHYWIV
F %WYFNIGXQEXXIV
G 7YMXEFPIGVMXIVME

H %RIRKEKIQIRXTVSGIWWERH
I %GSRGPYWMSR
8LI VIWTSRWMFPI TEVX] ERHXLI MRXIRHIH YWIV [MPPSJXIR FI JVSQ WITEVEXI SVKERM^EXMSRW FYX
RIIH RSX FI % VIWTSRWMFPI TEVX] ERH ER MRXIRHIH YWIV QE] FSXL FI [MXLMR XLI WEQI
SVKERM^EXMSR *SV I\EQTPI E KSZIVRMRK FSH] QE] WIIO EWWYVERGI EFSYX MRJSVQEXMSR
TVSZMHIH F] E GSQTSRIRX SJ XLEX SVKERM^EXMSR 8LI VIPEXMSRWLMT FIX[IIR XLI VIWTSRWMFPI
TEVX]ERHXLIMRXIRHIHYWIVRIIHWXSFIZMI[IH[MXLMRXLIGSRXI\XSJEWTIGMJMGIRKEKIQIRX
8LIVIMWEFVSEHVERKISJIRKEKIQIRXWXSTVSZMHIELMKLSVQSHIVEXIPIZIPSJEWWYVERGI
7YGLIRKEKIQIRXWQE]MRGPYHI
E )RKEKIQIRXWXSVITSVXSREFVSEHVERKISJWYFNIGXQEXXIVWGSZIVMRKJMRERGMEPERHRSR
JMRERGMEPMRJSVQEXMSR

F %XXIWXERHHMVIGXVITSVXMRKIRKEKIQIRXW
G )RKEKIQIRXWXSVITSVXMRXIVREPP]ERHI\XIVREPP]ERH


H )RKEKIQIRXWMRXLITVMZEXIERHTYFPMGWIGXSV
 8LI WYFNIGX QEXXIV SJ ER EWWYVERGI IRKEKIQIRX QE] XEOI QER] JSVQW WYGL EW XLI
JSPPS[MRK
E (EXEJSVI\EQTPILMWXSVMGEPSVTVSWTIGXMZIJMRERGMEPMRJSVQEXMSRWXEXMWXMGEPMRJSVQEXMSR
TIVJSVQERGIMRHMGEXSVW 
F 7]WXIQWERHTVSGIWWIWJSVI\EQTPIMRXIVREPGSRXVSPW SV

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3XLIVIRKEKIQIRXWJVIUYIRXP]TIVJSVQIHF]TVSJIWWMSREPEGGSYRXERXWXLEXEVIRSXEWWYVERGI
IRKEKIQIRXWMRGPYHI

E %KVIIHYTSRTVSGIHYVIW
F 'SQTMPEXMSRSJJMRERGMEPSVSXLIVMRJSVQEXMSR
G 4VITEVEXMSRSJXE\VIXYVRW[LIRRSGSRGPYWMSRMWI\TVIWWIHERHXE\GSRWYPXMRK
H 1EREKIQIRXGSRWYPXMRKERH

I 3XLIVEHZMWSV]WIVZMGIW
8LMWWIGXMSR TVSZMHIWEJVEQI[SVOFYMPXSRTVMRGMTPIWJSV MHIRXMJ]MRK IZEPYEXMRK ERH
VIWTSRHMRKXSXLVIEXWXSMRHITIRHIRGI8LIJVEQI[SVOIWXEFPMWLIWTVMRGMTPIWXLEXQIQFIVW
SJEWWYVERGIXIEQWJMVQWERHRIX[SVOJMVQWWLSYPHYWIXSMHIRXMJ]XLVIEXWXSMRHITIRHIRGI
IZEPYEXI XLI WMKRMJMGERGI SJ XLSWI XLVIEXW ERH MJ XLI XLVIEXW EVI SXLIV XLER GPIEVP]
MRWMKRMJMGERX MHIRXMJ] ERH ETTP] WEJIKYEVHW XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER
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WEJIKYEVHW QE] IPMQMREXI XLI XLVIEX [LMPI SXLIVW QE] VIHYGI XLI XLVIEX XS ER EGGITXEFPI
PIZIP8LMWWIGXMSRVIUYMVIWQIQFIVWSJEWWYVERGIXIEQWJMVQWERHRIX[SVOJMVQWXSETTP]
XLITVMRGMTPIWXSXLITEVXMGYPEVGMVGYQWXERGIWYRHIVGSRWMHIVEXMSR8LII\EQTPIWTVIWIRXIH
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XS FI RSV WLSYPH XLI] FI MRXIVTVIXIH EW ER I\LEYWXMZI PMWX SJ EPP GMVGYQWXERGIW XLEX QE]
GVIEXI XLVIEXW XS MRHITIRHIRGI 'SRWIUYIRXP] MX MW RSX WYJJMGMIRX JSV E QIQFIV SJ ER
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JEGI


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MRXIKVMX]ERHI\IVGMWISFNIGXMZMX]ERHTVSJIWWMSREPWOITXMGMWQ

F -RHITIRHIRGIMRETTIEVERGI
8LIEZSMHERGISJJEGXWERHGMVGYQWXERGIWXLEXEVIWSWMKRMJMGERXXLEXEVIEWSREFPIERH
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safeguards applied, would reasonably conclude a firm’s, or a member of the assurance
team’s, integrity, SFNIGXMZMX]SVTVSJIWWMSREPWOITXMGMWQLEHFIIRGSQTVSQMWIH
8.9 The use of the word “independence” on its own may create misunderstandings. Standing
EPSRI XLI [SVH QE] PIEH SFWIVZIVW XS WYTTSWI XLEX E TIVWSR I\IVGMWMRK TVSJIWWMSREP
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MQTSWWMFPI EW IZIV] QIQFIV SJ WSGMIX] LEW VIPEXMSRWLMTW [MXL SXLIVW 8LIVIJSVI XLI
WMKRMJMGERGISJIGSRSQMGJMRERGMEPERHSXLIVVIPEXMSRWLMTWWLSYPHEPWSFIIZEPYEXIHMRXLI
PMKLX SJ [LEX E VIEWSREFPI ERH MRJSVQIH XLMVH TEVX] LEZMRK ORS[PIHKI SJ EPP VIPIZERX
MRJSVQEXMSR[SYPHVIEWSREFP]GSRGPYHIXSFIYREGGITXEFPI
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ERHWTIGMJ]XLIETTVSTVMEXIQMXMKEXMRKEGXMSRXLEXWLSYPHFIXEOIR-REHHMXMSRXLIREXYVISJ
EWWYVERGI IRKEKIQIRXWQE] HMJJIV ERH GSRWIUYIRXP] HMJJIVIRXXLVIEXW QE] I\MWX VIUYMVMRK
XLI ETTPMGEXMSR SJ HMJJIVIRX WEJIKYEVHW % GSRGITXYEP JVEQI[SVO XLEX VIUYMVIW JMVQW ERH
QIQFIVW SJ EWWYVERGI XIEQW XS MHIRXMJ] IZEPYEXI ERH EHHVIWW XLVIEXW XS MRHITIRHIRGI
VEXLIVXLERQIVIP]GSQTP][MXLEWIXSJWTIGMJMGVYPIW[LMGLQE]FIEVFMXVEV]MWXLIVIJSVI
MRXLITYFPMGMRXIVIWX
8LMWWIGXMSRMWFEWIHSRWYGLEGSRGITXYEPETTVSEGLSRIXLEXXEOIWMRXSEGGSYRXXLVIEXW
XS MRHITIRHIRGI EGGITXIH WEJIKYEVHW ERH XLI TYFPMG MRXIVIWX 9RHIV XLMW ETTVSEGL JMVQW
ERHQIQFIVWSJEWWYVERGIXIEQWLEZIERSFPMKEXMSRXSMHIRXMJ]ERHIZEPYEXIGMVGYQWXERGIW
ERH VIPEXMSRWLMTW XLEX GVIEXI XLVIEXW XS MRHITIRHIRGI ERH XS XEOI ETTVSTVMEXI EGXMSR XS
IPMQMREXI XLIWI XLVIEXW SV XS VIHYGI XLIQ XS ER EGGITXEFPI PIZIP F] XLI ETTPMGEXMSR SJ
WEJIKYEVHW -R EHHMXMSR XS MHIRXMJ]MRK ERH IZEPYEXMRK VIPEXMSRWLMTW FIX[IIR XLI JMVQ
RIX[SVO JMVQW QIQFIVW SJ XLI EWWYVERGI XIEQ ERH XLI EWWYVERGI GPMIRX GSRWMHIVEXMSR
WLSYPHFIKMZIRXS[LIXLIVVIPEXMSRWLMTWFIX[IIRMRHMZMHYEPWSYXWMHISJXLIEWWYVERGIXIEQ
ERHXLIEWWYVERGIGPMIRXGVIEXIXLVIEXWXSMRHITIRHIRGI
 8LMW WIGXMSR TVSZMHIW E JVEQI[SVO SJ TVMRGMTPIW XLEX QIQFIVW SJ EWWYVERGI XIEQW
JMVQW ERH RIX[SVO JMVQW WLSYPH YWI XS MHIRXMJ] XLVIEXW XS MRHITIRHIRGI IZEPYEXI XLI
WMKRMJMGERGISJXLSWIXLVIEXWERHMJXLIXLVIEXWEVISXLIVXLERGPIEVP]MRWMKRMJMGERXMHIRXMJ]
ERH ETTP] WEJIKYEVHW XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER EGGITXEFPI PIZIP WYGL
XLEXMRHITIRHIRGISJQMRHERHMRHITIRHIRGIMRETTIEVERGIEVIRSXGSQTVSQMWIH
 8LI TVMRGMTPIW MR XLMW WIGXMSR ETTP] XS EPP EWWYVERGI IRKEKIQIRXW 8LI REXYVI SJ XLI
XLVIEXWXSMRHITIRHIRGIERHXLIETTPMGEFPIWEJIKYEVHWRIGIWWEV]XSIPMQMREXIXLIXLVIEXWSV


VIHYGIXLIQXSEREGGITXEFPIPIZIPHMJJIVHITIRHMRKSRXLIGLEVEGXIVMWXMGWSJXLIMRHMZMHYEP
IRKEKIQIRX[LIXLIVXLIEWWYVERGIIRKEKIQIRXMWEREYHMXIRKEKIQIRXSVERSXLIVX]TISJ
IRKEKIQIRXERHMRXLIGEWISJEREWWYVERGIIRKEKIQIRXXLEXMWRSXEREYHMXIRKEKIQIRX
XLI TYVTSWI WYFNIGX QEXXIV ERH MRXIRHIH YWIVW SJ XLI VITSVX % JMVQ WLSYPH XLIVIJSVI
IZEPYEXIXLIVIPIZERXGMVGYQWXERGIWXLIREXYVISJXLIEWWYVERGIIRKEKIQIRXERHXLIXLVIEXW
XSMRHITIRHIRGIMRHIGMHMRK[LIXLIVMXMWETTVSTVMEXIXSEGGITXSVGSRXMRYIERIRKEKIQIRX
EW[IPPEWXLIREXYVISJXLIWEJIKYEVHWVIUYMVIHERH[LIXLIVETEVXMGYPEVMRHMZMHYEPWLSYPH
FIEQIQFIVSJXLIEWWYVERGIXIEQ
%YHMXIRKEKIQIRXWTVSZMHIEWWYVERGIXSE[MHIVERKISJTSXIRXMEPYWIVWGSRWIUYIRXP]
MR EHHMXMSR XS MRHITIRHIRGI SJ QMRH MRHITIRHIRGI MR ETTIEVERGI MW SJ TEVXMGYPEV
WMKRMJMGERGI%GGSVHMRKP]JSVEYHMXGPMIRXWXLIQIQFIVWSJXLIEWWYVERGIXIEQXLIJMVQERH
RIX[SVOJMVQWEVIVIUYMVIHXSFIMRHITIRHIRXSJXLIEYHMXGPMIRX7MQMPEVGSRWMHIVEXMSRWMR
XLI GEWI SJ EWWYVERGI IRKEKIQIRXW TVSZMHIH XS RSREYHMX EWWYVERGI GPMIRXW VIUYMVI XLI
QIQFIVWSJXLIEWWYVERGIXIEQERHXLIJMVQXSFIMRHITIRHIRXSJXLIRSREYHMXEWWYVERGI
GPMIRX-RXLIGEWISJXLIWIIRKEKIQIRXWGSRWMHIVEXMSRWLSYPHFIKMZIRXSER]XLVIEXWXLEX
XLIJMVQLEWVIEWSRXSFIPMIZIQE]FIGVIEXIHF]RIX[SVOJMVQMRXIVIWXWERHVIPEXMSRWLMTW
-RXLIGEWISJEREWWYVERGIVITSVXXSERSREYHMXEWWYVERGIGPMIRXI\TVIWWP]VIWXVMGXIH
JSVYWIF]MHIRXMJMIHYWIVWXLIYWIVWSJXLIVITSVXEVIGSRWMHIVIHXSFIORS[PIHKIEFPIEWXS
XLI TYVTSWI WYFNIGX QEXXIV ERH PMQMXEXMSRW SJ XLI VITSVX XLVSYKL XLIMV TEVXMGMTEXMSR MR
IWXEblishing the nature and scope of the firm’s instructions to deliver the services, including
XLIGVMXIVMEF][LMGLXLIWYFNIGXQEXXIVEVIXSFIIZEPYEXIH8LMWORS[PIHKIERHIRLERGIH
EFMPMX]SJXLIJMVQXSGSQQYRMGEXIEFSYXWEJIKYEVHW[MXLEPPYWIVWSJXLI VITSVXMRGVIEWIXLI
IJJIGXMZIRIWW SJ WEJIKYEVHW XS MRHITIRHIRGI MR ETTIEVERGI 8LIWI GMVGYQWXERGIW QE] FI
XEOIRMRXSEGGSYRXF]XLIJMVQMRIZEPYEXMRKXLIXLVIEXWXSMRHITIRHIRGIERHGSRWMHIVMRKXLI
ETTPMGEFPI WEJIKYEVHW RIGIWWEV] XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER EGGITXEFPI
PIZIP %X E QMRMQYQ MX [MPP FI RIGIWWEV] XS ETTP] XLI TVSZMWMSRW SJ XLMW WIGXMSR MR
IZEPYEXMRK XLI MRHITIRHIRGI SJ QIQFIVW SJ XLI EWWYVERGI XIEQ ERH XLIMV MQQIHMEXI ERH
GPSWIJEQMP]*YVXLIVMJXLIJMVQLEHEQEXIVMEPJMRERGMEPMRXIVIWX[LIXLIVHMVIGXSVMRHMVIGX
MRXLIEWWYVERGIGPMIRXXLIWIPJMRXIVIWXXLVIEXGVIEXIH[SYPHFIWSWMKRMJMGERXRSWEJIKYEVH
GSYPHVIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP0MQMXIHGSRWMHIVEXMSRSJER]XLVIEXWGVIEXIH
F]RIX[SVOJMVQMRXIVIWXWERHVIPEXMSRWLMTWQE]FIWYJJMGMIRX

%GGSVHMRKP]
E  *SV EWWYVERGI IRKEKIQIRXW TVSZMHIH XS ER EYHMX GPMIRX XLI QIQFIVW SJ XLI
EWWYVERGI XIEQ XLI JMVQ ERH RIX[SVO JMVQW EVI VIUYMVIH XS FI MRHITIRHIRX SJ XLI
GPMIRX
F *SVEWWYVERGIIRKEKIQIRXWTVSZMHIHXSGPMIRXWXLEXEVIRSXEYHMXGPMIRXW[LIRXLIVITSVX
MW RSX I\TVIWWP] VIWXVMGXIH JSV YWI F] MHIRXMJMIH YWIVW XLI QIQFIVW SJ XLI EWWYVERGI XIEQ
ERHXLIJMVQEVIVIUYMVIHXSFIMRHITIRHIRXSJXLIGPMIRXERH

G *SVEWWYVERGIIRKEKIQIRXWTVSZMHIHXSGPMIRXWXLEXEVIRSXEYHMXGPMIRXW[LIRXLI
EWWYVERGIVITSVXMWI\TVIWWP]VIWXVMGXIHJSVYWIF]MHIRXMJMIHYWIVWXLIQIQFIVWSJXLI
EWWYVERGI XIEQ EVI VIUYMVIH XS FI MRHITIRHIRX SJ XLI GPMIRX -R EHHMXMSR XLI JMVQ
WLSYPHRSXLEZIEQEXIVMEPHMVIGXSVMRHMVIGXJMRERGMEPMRXIVIWXMRXLIGPMIRX
 8LI XLVIEXW ERH WEJIKYEVHW MHIRXMJMIH MR XLMW WIGXMSR EVI KIRIVEPP] HMWGYWWIH MR XLI
GSRXI\X SJ MRXIVIWXW SV VIPEXMSRWLMTW FIX[IIR XLI JMVQ RIX[SVO JMVQW E QIQFIV SJ XLI
EWWYVERGIXIEQERHXLIEWWYVERGIGPMIRX-RXLIGEWISJEPMWXIHEYHMXGPMIRXXLIJMVQERHER]


RIX[SVO JMVQW EVI VIUYMVIH XS GSRWMHIV XLI MRXIVIWXW ERH VIPEXMSRWLMTW XLEX MRZSPZI XLEX
client’s related entities. Ideally those entities and the interests and relationships should be
MHIRXMJMIHMREHZERGI*SVEPPSXLIVEWWYVERGIGPMIRXW[LIRXLIEWWYVERGIXIEQLEWVIEWSRXS
FIPMIZIXLEXEVIPEXIHIRXMX]SJWYGLEREWWYVERGIGPMIRXMWVIPIZERXXSXLIIZEPYEXMSRSJXLI
firm’s independence of the client, the assurance team should consider thaX VIPEXIH IRXMX]
[LIRIZEPYEXMRKMRHITIRHIRGIERHETTP]MRKETTVSTVMEXIWEJIKYEVHW
8LIIZEPYEXMSRSJXLVIEXWXSMRHITIRHIRGIERHWYFWIUYIRXEGXMSRWLSYPHFIWYTTSVXIH
F]IZMHIRGISFXEMRIHFIJSVIEGGITXMRKXLIIRKEKIQIRXERH[LMPIMXMWFIMRKTIVJSVQIH8LI
SFPMKEXMSRXSQEOIWYGLERIZEPYEXMSRERHXEOIEGXMSREVMWIW[LIREJMVQERIX[SVOJMVQSV
E QIQFIV SJ XLI EWWYVERGI XIEQ ORS[W SV GSYPH VIEWSREFP] FI I\TIGXIH XS ORS[ SJ
GMVGYQWXERGIW SV VIPEXMSRWLMTW XLEX QMKLX GSQTVSQMWI MRHITIRHIRGI 8LIVI QE] FI
SGGEWMSRW[LIRXLIJMVQERIX[SVOJMVQSVERMRHMZMHYEPMREHZIVXIRXP]ZMSPEXIWXLMWWIGXMSR
-J WYGL ER MREHZIVXIRX ZMSPEXMSR SGGYVW MX [SYPH KIRIVEPP] RSX GSQTVSQMWI MRHITIRHIRGI
[MXLVIWTIGXXSEREWWYVERGIGPMIRXTVSZMHIHXLIJMVQLEWETTVSTVMEXIUYEPMX]GSRXVSPTSPMGMIW
ERH TVSGIHYVIW MR TPEGI XS TVSQSXI MRHITIRHIRGI ERH SRGI HMWGSZIVIH XLI ZMSPEXMSR MW
GSVVIGXIHTVSQTXP]ERHER]RIGIWWEV]WEJIKYEVHWEVIETTPMIH
 8LVSYKLSYX XLMW WIGXMSR VIJIVIRGI MW QEHI XS WMKRMJMGERX ERH GPIEVP] MRWMKRMJMGERX
XLVIEXWMRXLIIZEPYEXMSRSJMRHITIRHIRGI-RGSRWMHIVMRKXLIWMKRMJMGERGISJER]TEVXMGYPEV
QEXXIV UYEPMXEXMZI EW [IPP EW UYERXMXEXMZI JEGXSVW WLSYPH FI XEOIR MRXS EGGSYRX % QEXXIV
WLSYPH FI GSRWMHIVIH GPIEVP] MRWMKRMJMGERX SRP] MJ MX MW HIIQIH XS FI FSXL XVMZMEP ERH
MRGSRWIUYIRXMEP

3&.)'8-:)%2(7869'896)3*8,-77)'8-32
8LISFNIGXMZISJXLMWWIGXMSRMWXSEWWMWXJMVQWERHQIQFIVWSJEWWYVERGIXIEQWMR

E -HIRXMJ]MRKXLVIEXWXSMRHITIRHIRGI
F )ZEPYEXMRK[LIXLIVXLIWIXLVIEXWEVIGPIEVP]MRWMKRMJMGERXERH
G  -R GEWIW [LIR XLI XLVIEXW EVI RSX GPIEVP] MRWMKRMJMGERX MHIRXMJ]MRK ERH ETTP]MRK
ETTVSTVMEXIWEJIKYEVHWXSIPMQMREXISVVIHYGIXLIXLVIEXWXSEREGGITXEFPIPIZIP-RWMXYEXMSRW
[LIR RS WEJIKYEVHW EVI EZEMPEFPI XS VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP XLI SRP]
TSWWMFPIEGXMSRWEVIXSIPMQMREXIXLIEGXMZMXMIWSVMRXIVIWXGVIEXMRKXLIXLVIEXSVXSVIJYWIXS
EGGITXSVGSRXMRYIXLIEWWYVERGIIRKEKIQIRX
 8LMW WIGXMSR SYXPMRIW XLI XLVIEXW XS MRHITIRHIRGI TEVEKVETLW  XLVSYKL   -X
XLIR EREP]^IW WEJIKYEVHW GETEFPI SJ IPMQMREXMRK XLIWI XLVIEXW SV VIHYGMRK XLIQ XS ER
EGGITXEFPIPIZIPTEVEKVETLWXLVSYKL  -XGSRGPYHIW[MXLWSQII\EQTPIWSJLS[
XLMW GSRGITXYEP ETTVSEGL XS MRHITIRHIRGI MW XS FI ETTPMIH XS WTIGMJMG GMVGYQWXERGIW ERH
VIPEXMSRWLMTW8LII\EQTPIWHMWGYWWXLVIEXWXSMRHITIRHIRGIXLEXQE]FIGVIEXIHF]WTIGMJMG
GMVGYQWXERGIWERH VIPEXMSRWLMTWTEVEKVETLW SR[EVHW 4VSJIWWMSREPNYHKQIRXMWYWIH
XS HIXIVQMRI XLI ETTVSTVMEXI WEJIKYEVHW XS IPMQMREXI XLVIEXW XS MRHITIRHIRGI SV XS VIHYGI
XLIQ XS ER EGGITXEFPI PIZIP -R GIVXEMR I\EQTPIW XLI XLVIEXW XS MRHITIRHIRGI EVI WS
WMKRMJMGERX XLI SRP] TSWWMFPI EGXMSRW EVI XS IPMQMREXI XLI EGXMZMXMIW SV MRXIVIWX GVIEXMRK XLI
XLVIEXSVXSVIJYWIXSEGGITXSVGSRXMRYIXLIEWWYVERGIIRKEKIQIRX-RSXLIVI\EQTPIWXLI
XLVIEXGERFIIPMQMREXIHSVVIHYGIHXSEREGGITXEFPIPIZIPF]XLIETTPMGEXMSRSJWEJIKYEVHW
8LII\EQTPIWEVIRSXMRXIRHIHXSFIEPPMRGPYWMZI
;LIRXLVIEXWXSMRHITIRHIRGIXLEXEVIRSXGPIEVP]MRWMKRMJMGERXEVIMHIRXMJMIHERHXLI
JMVQ HIGMHIW XS EGGITX SV GSRXMRYI XLI EWWYVERGI IRKEKIQIRX XLI HIGMWMSR WLSYPH FI


HSGYQIRXIH 8LI HSGYQIRXEXMSR WLSYPH MRGPYHIEHIWGVMTXMSR SJ XLI XLVIEXW MHIRXMJMIHERH
XLIWEJIKYEVHWETTPMIHXSIPMQMREXISVVIHYGIXLIXLVIEXWXSEREGGITXEFPIPIZIP

 8LIIZEPYEXMSR SJXLIWMKRMJMGERGISJER]XLVIEXWXS MRHITIRHIRGI ERH XLIWEJIKYEVHW

RIGIWWEV]XSVIHYGIER]XLVIEXWXSEREGGITXEFPIPIZIPXEOIWMRXSEGGSYRXXLITYFPMGMRXIVIWX
'IVXEMRIRXMXMIWQE]FISJWMKRMJMGERXTYFPMGMRXIVIWXFIGEYWIEWEVIWYPXSJXLIMVFYWMRIWW
XLIMVWM^ISVXLIMVGSVTSVEXIWXEXYWXLI]LEZIE[MHIVERKISJWXEOILSPHIVW)\EQTPIWSJWYGL
IRXMXMIW QMKLX MRGPYHI PMWXIH GSQTERMIW GVIHMX MRWXMXYXMSRW MRWYVERGI GSQTERMIW ERH
TIRWMSR JYRHW &IGEYWI SJ XLI WXVSRK TYFPMG MRXIVIWX MR XLI JMRERGMEP WXEXIQIRXW SJ PMWXIH
IRXMXMIW GIVXEMR TEVEKVETLW MR XLMW WIGXMSR HIEP [MXLEHHMXMSREPQEXXIVW XLEXEVI VIPIZERX XS
XLIEYHMXSJPMWXIHIRXMXMIW'SRWMHIVEXMSRWLSYPHFIKMZIRXSXLIETTPMGEXMSRSJXLITVMRGMTPIW
WIXSYXMRXLMWWIGXMSRMRVIPEXMSRXSXLIEYHMXSJPMWXIHIRXMXMIWXSSXLIVEYHMXGPMIRXWXLEXQE]
FISJWMKRMJMGERXTYFPMGMRXIVIWX

2%8-32%04)674)'8-:)7
 8LMW WIGXMSR IWXEFPMWLIW E GSRGITXYEP JVEQI[SVO JSV MRHITIRHIRGI VIUYMVIQIRXW JSV
EWWYVERGIIRKEKIQIRXWXLEXMWXLIMRXIVREXMSREPWXERHEVHSR[LMGLREXMSREPWXERHEVHWWLSYPH
FIFEWIH%GGSVHMRKP]RSQIQFIVFSH]SVJMVQMWEPPS[IHXSETTP]PIWWWXVMRKIRXWXERHEVHW
XLER XLSWI WXEXIH MR XLMW WIGXMSR ;LIR LS[IZIV QIQFIV FSHMIW SV JMVQW EVI TVSLMFMXIH
JVSQGSQTP]MRK[MXLGIVXEMRTEVXWSJXLMWWIGXMSRF]PE[SVVIKYPEXMSRXLI]WLSYPHGSQTP]
[MXLEPPSXLIVTEVXWSJXLMWWIGXMSR
'IVXEMRI\EQTPIWMRXLMWWIGXMSRMRHMGEXILS[XLITVMRGMTPIWEVIXSFIETTPMIHXSPMWXIH
IRXMX]EYHMXIRKEKIQIRXW;LIREQIQFIVFSH]GLSSWIWRSXXSHMJJIVIRXMEXIFIX[IIRPMWXIH
IRXMX] EYHMX IRKEKIQIRXW ERH SXLIV EYHMX IRKEKIQIRXW XLI I\EQTPIW XLEX VIPEXI XS PMWXIH
IRXMX]EYHMXIRKEKIQIRXWWLSYPHFIGSRWMHIVIHXSETTP]XSEPPEYHMXIRKEKIQIRXW

;LIREJMVQGSRHYGXWEREWWYVERGIIRKEKIQIRXMREGGSVHERGI[MXLXLI-7%)SV[MXL
WTIGMJMG WXERHEVHW JSV EWWYVERGI IRKEKIQIRXW MWWYIH F] XLI -%77& WYGL EW ER EYHMX SV
VIZMI[ SJ JMRERGMEP WXEXIQIRXW MR EGGSVHERGI [MXL -7%W EW EHSTXIH F] XLI VIWTIGXMZI
1IQFIV &SH] SJ 7%*% XLI QIQFIVW SJXLIEWWYVERGI XIEQ ERH XLI JMVQWLSYPHGSQTP]
[MXLXLMWWIGXMSRYRPIWWXLI]EVITVSLMFMXIHJVSQGSQTP]MRK[MXLGIVXEMRTEVXWSJXLMWWIGXMSR
F]PE[SVVIKYPEXMSR-RWYGLGEWIWXLIQIQFIVWSJXLIEWWYVERGIXIEQERHXLIJMVQWLSYPH
GSQTP][MXLEPPSXLIVTEVXWSJXLMWWIGXMSR
 7SQI GSYRXVMIW ERH GYPXYVIW QE] LEZI WIX SYX IMXLIV F] PIKMWPEXMSR SV GSQQSR
TVEGXMGIHMJJIVIRXHIJMRMXMSRWSJVIPEXMSRWLMTWJVSQXLSWIYWIHMRXLMWWIGXMSR*SVI\EQTPI
WSQIREXMSREPPIKMWPEXSVWSVVIKYPEXSVWQE]LEZITVIWGVMFIHPMWXWSJMRHMZMHYEPW[LSWLSYPH
FIVIKEVHIHEWGPSWIJEQMP]XLEXHMJJIVJVSQXLIHIJMRMXMSRGSRXEMRIHMRXLMWWIGXMSR*MVQW
RIX[SVO JMVQW ERH QIQFIVW SJ EWWYVERGI XIEQWWLSYPH FI E[EVI SJ XLSWI HMJJIVIRGIW ERH
GSQTP][MXLXLIQSVIWXVMRKIRXVIUYMVIQIRXW

8,6)%8783-2()4)2()2')
-RHITIRHIRGIMWTSXIRXMEPP]EJJIGXIHF]WIPJMRXIVIWXWIPJVIZMI[EHZSGEG]JEQMPMEVMX]
ERHMRXMQMHEXMSRXLVIEXW
8.29 “SelfInterest Threat” occurs when a firm or a member of the assurance team GSYPH
FIRIJMXJVSQEJMRERGMEPMRXIVIWXMRSVSXLIVWIPJMRXIVIWXGSRJPMGX[MXLEREWWYVERGIGPMIRX
)\EQTPIWSJGMVGYQWXERGIWXLEXQE]GVIEXIXLMWXLVIEXMRGPYHIFYXEVIRSXPMQMXIHXS


E  % HMVIGX JMRERGMEP MRXIVIWX SV QEXIVMEP MRHMVIGX JMRERGMEP MRXIVIWX MR ER EWWYVERGI
GPMIRX
F %PSERSVKYEVERXIIXSSVJVSQEREWWYVERGIGPMIRXSVER]SJMXWHMVIGXSVWSVSJJMGIVW

G 9RHYIHITIRHIRGISRXSXEPJIIWJVSQEREWWYVERGIGPMIRX

H 'SRGIVREFSYXXLITSWWMFMPMX]SJPSWMRKXLIIRKEKIQIRX
I ,EZMRKEGPSWIFYWMRIWWVIPEXMSRWLMT[MXLEREWWYVERGIGPMIRX
J 4SXIRXMEPIQTPS]QIRX[MXLEREWWYVERGIGPMIRXERH

K 'SRXMRKIRXJIIWVIPEXMRKXSEWWYVERGIIRKEKIQIRXW
8.30 “SelfReview Threat” occurs when: any product or judgment of a previous assuraRGI
IRKEKIQIRXSVRSREWWYVERGIIRKEKIQIRXRIIHWXSFIVIIZEPYEXIHMRVIEGLMRKGSRGPYWMSRW
SR XLI EWWYVERGI IRKEKIQIRX SV [LIR E QIQFIV SJ XLI EWWYVERGI XIEQ [EW TVIZMSYWP] E
HMVIGXSVSVSJJMGIVSJXLIEWWYVERGIGPMIRXSV[EWERIQTPS]IIMRETSWMXMSRXSI\IVXHMVIGX
ERHWMKRMJMGERXMRJPYIRGISZIVXLIWYFNIGXQEXXIVSJXLIEWWYVERGIIRKEKIQIRX )\EQTPIWSJ
GMVGYQWXERGIWXLEXQE]GVIEXIXLMWXLVIEXMRGPYHIFYXEVIRSXPMQMXIHXS

E  % QIQFIV SJ XLI EWWYVERGI XIEQ FIMRK SV LEZMRK VIGIRXP] FIIR E HMVIGXSV SV
SJJMGIVSJXLIEWWYVERGIGPMIRX
F  % QIQFIV SJ XLI EWWYVERGI XIEQ FIMRK SV LEZMRK VIGIRXP] FIIR ER IQTPS]II SJ XLI
EWWYVERGIGPMIRXMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERXMRJPYIRGISZIVXLIWYFNIGXQEXXIV
SJXLIEWWYVERGIIRKEKIQIRX

G 4IVJSVQMRKWIVZMGIWJSVEREWWYVERGIGPMIRXXLEXHMVIGXP]EJJIGXXLIWYFNIGXQEXXIVSJ
XLIEWWYVERGIIRKEKIQIRXERH
H 4VITEVEXMSRSJSVMKMREPHEXEYWIHXSKIRIVEXIJMRERGMEPWXEXIQIRXWSVTVITEVEXMSRSJSXLIV
VIGSVHWXLEXEVIXLIWYFNIGXQEXXIVSJXLIEWWYVERGIIRKEKIQIRX

8.31 “Advocacy Threat” occurs when a firm, or a member of the assurance team, promotes,
or may be perceived to promote, an assurance client’s position or opinion to the point that
SFNIGXMZMX]QE]SVQE]FITIVGIMZIHXSFIGSQTVSQMWIH7YGLQE]FIXLIGEWIMJEJMVQSV
E QIQFIV SJ XLI EWWYVERGI XIEQ [IVI XS WYFSVHMREXI XLIMV NYHKQIRX XS XLEX SJ XLI GPMIRX
)\EQTPIWSJGMVGYQWXERGIWXLEXQE]GVIEXIXLMWXLVIEXMRGPYHIFYXEVIRSXPMQMXIHXS
E (IEPMRKMRSVFIMRKETVSQSXIVSJ WLEVIWSVSXLIVWIGYVMXMIWMREREWWYVERGIGPMIRXERH

F %GXMRKEWEREHZSGEXISRFILEPJSJEREWWYVERGIGPMIRXMRPMXMKEXMSRSVMRVIWSPZMRK
HMWTYXIW[MXLXLMVHTEVXMIW
8.32 “Familiarity Threat” occurs when, by virtue of a close relationship with an EWWYVERGI
GPMIRX MXW HMVIGXSVW SJJMGIVW SV IQTPS]IIW E JMVQ SV E QIQFIV SJ XLI EWWYVERGI XIEQ
becomes too sympathetic to the client’s interests. )\EQTPIW SJ GMVGYQWXERGIW XLEX QE]
GVIEXIXLMWXLVIEXMRGPYHIFYXEVIRSXPMQMXIHXS
E  % QIQFIV SJ XLI EWWYVERGI XIEQ LEZMRK ER MQQIHMEXI JEQMP] QIQFIV SV GPSWI
JEQMP]QIQFIV[LSMWEHMVIGXSVSVSJJMGIVSJXLIEWWYVERGIGPMIRX


F  % QIQFIV SJ XLI EWWYVERGI XIEQ LEZMRK ER MQQIHMEXI JEQMP] QIQFIV SV GPSWI
JEQMP] QIQFIV [LS EW ER IQTPS]II SJ XLIEWWYVERGI GPMIRX MW MR E TSWMXMSR XS I\IVX
HMVIGXERHWMKRMJMGERXMRJPYIRGISZIVXLIWYFNIGXQEXXIVSJXLIEWWYVERGIIRKEKIQIRX
G %JSVQIVTEVXRIVSJXLIJMVQFIMRKEHMVIGXSVSJJMGIVSJXLIEWWYVERGIGPMIRXSVER
IQTPS]IIMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERXMRJPYIRGISZIVXLIWYFNIGXQEXXIV
SJXLIEWWYVERGIIRKEKIQIRX

H  0SRK EWWSGMEXMSR SJ E WIRMSV QIQFIV SJ XLI EWWYVERGI XIEQ [MXL XLI EWWYVERGI
GPMIRXERH
I %GGITXERGISJKMJXWSVLSWTMXEPMX]YRPIWWXLIZEPYIMWGPIEVP]MRWMKRMJMGERXJVSQ XLI
EWWYVERGIGPMIRXMXWHMVIGXSVWSJJMGIVWSVIQTPS]IIW
8.33 “Intimidation Threat” occurs when a member of the assurance team may be deterred
JVSQ EGXMRK SFNIGXMZIP] ERH I\IVGMWMRK TVSJIWWMSREP WOITXMGMWQ F] XLVIEXW EGXYEP SV
TIVGIMZIH JVSQ XLI HMVIGXSVW SJJMGIVW SV IQTPS]IIW SJ ER EWWYVERGI GPMIRX )\EQTPIW SJ
GMVGYQWXERGIWXLEXQE]GVIEXIXLMWXLVIEXMRGPYHIFYXEVIRSXPMQMXIHXS
E 8LVIEXSJVITPEGIQIRXSZIVEHMWEKVIIQIRX[MXLXLIETTPMGEXMSRSJEREGGSYRXMRK
TVMRGMTPIERH
F 4VIWWYVIXSVIHYGIMRETTVSTVMEXIP]XLII\XIRXSJ[SVOTIVJSVQIHMRSVHIVXSVIHYGIJIIW

7%*)+9%6(7
 8LI JMVQ ERH QIQFIVW SJ XLI EWWYVERGI XIEQ LEZI E VIWTSRWMFMPMX] XS VIQEMR
MRHITIRHIRX F] XEOMRK MRXS EGGSYRX XLI GSRXI\X MR [LMGL XLI] TVEGXMGI XLI XLVIEXW XS
MRHITIRHIRGI ERH XLI WEJIKYEVHW EZEMPEFPI XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER
EGGITXEFPIPIZIP
;LIRXLVIEXWEVIMHIRXMJMIHSXLIVXLERXLSWIXLEXEVIGPIEVP]MRWMKRMJMGERXETTVSTVMEXI
WEJIKYEVHW WLSYPH FI MHIRXMJMIH ERH ETTPMIH XS IPMQMREXI XLI XLVIEXW SV VIHYGI XLIQ XS ER
EGGITXEFPI PIZIP 8LMW HIGMWMSR WLSYPH FI HSGYQIRXIH 8LI REXYVISJXLI WEJIKYEVHW XS FI
ETTPMIH[MPPZEV]HITIRHMRKYTSRXLIGMVGYQWXERGIW'SRWMHIVEXMSRWLSYPHEP[E]WFIKMZIR
XS[LEXEVIEWSREFPIERHMRJSVQIHXLMVHTEVX]LEZMRKORS[PIHKISJEPPVIPIZERXMRJSVQEXMSR
MRGPYHMRK WEJIKYEVHW ETTPMIH [SYPH VIEWSREFP] GSRGPYHI XS FI YREGGITXEFPI 8LI
GSRWMHIVEXMSR[MPPFIEJJIGXIHF]QEXXIVWWYGLEWXLIWMKRMJMGERGISJXLIXLVIEXXLIREXYVISJ
XLIEWWYVERGIIRKEKIQIRXXLI MRXIRHIHYWIVWSJXLIEWWYVERGIVITSVXERHXLIWXVYGXYVISJXLI
JMVQ


7EJIKYEVHWJEPPMRXSXLVIIFVSEHGEXIKSVMIW

E 7EJIKYEVHWGVIEXIHF]XLITVSJIWWMSRPIKMWPEXMSRSVVIKYPEXMSR
F 7EJIKYEVHW[MXLMRXLIEWWYVERGIGPMIRXERH
G 7EJIKYEVHs within the firm’s own systems and procedures.

8LI JMVQ ERH XLI QIQFIVW SJ XLI EWWYVERGI XIEQ WLSYPH WIPIGX ETTVSTVMEXI WEJIKYEVHW XS
IPMQMREXISVVIHYGIXLVIEXWXSMRHITIRHIRGISXLIVXLERXLSWIXLEXEVIGPIEVP]MRWMKRMJMGERXXS
EREGGITXEFPIPIZIP

7EJIKYEVHWGVIEXIHF]XLITVSJIWWMSRPIKMWPEXMSRSVVIKYPEXMSRMRGPYHIXLIJSPPS[MRK
E )HYGEXMSREPXVEMRMRKERHI\TIVMIRGIVIUYMVIQIRXWJSVIRXV]MRXSXLITVSJIWWMSR

F 'SRXMRYMRKIHYGEXMSRVIUYMVIQIRXW
G 4VSJIWWMSREPWXERHEVHWERHQSRMXSVMRKERHHMWGMTPMREV]TVSGIWWIW
(d) External review of a firm’s quality control system; and

I 0IKMWPEXMSRKSZIVRMRKXLIMRHITIRHIRGIVIUYMVIQIRXWSJXLIJMVQ
7EJIKYEVHW[MXLMRXLIEWWYVERGIGPMIRXMRGPYHIXLIJSPPS[MRK
E  ;LIR XLI EWWYVERGI client’s management appoints the firm, persons other than
QEREKIQIRXVEXMJ]SVETTVSZIXLIETTSMRXQIRX

F 8LIEWWYVERGIGPMIRXLEWGSQTIXIRXIQTPS]IIWXSQEOIQEREKIVMEPHIGMWMSRW
(c) Policies and procedures that emphasize the assurance client’s commMXQIRX XS JEMV
JMRERGMEPVITSVXMRK

H  -RXIVREP TVSGIHYVIW XLEX IRWYVI SFNIGXMZI GLSMGIW MR GSQQMWWMSRMRK RSREWWYVERGI

IRKEKIQIRXWERH
I %GSVTSVEXIKSZIVRERGIWXVYGXYVIWYGLEWEREYHMXGSQQMXXIIXLEXTVSZMHIWETTVSTVMEXI
SZIVWMKLXERHGSQQYRMGEXions regarding a firm’s services.
 %YHMX GSQQMXXIIW GER LEZI ER MQTSVXERX GSVTSVEXI KSZIVRERGI VSPI [LIR XLI] EVI
MRHITIRHIRX SJ GPMIRX QEREKIQIRX ERH GER EWWMWX XLI &SEVH SJ (MVIGXSVW MR WEXMWJ]MRK
XLIQWIPZIWXLEXEJMVQMWMRHITIRHIRXMRGEVV]MRKSYXMXWEYHMXVSPI8LIVIWLSYPHFIVIKYPEV
GSQQYRMGEXMSRW FIX[IIR XLI JMVQ ERH XLI EYHMX GSQQMXXII SV SXLIV KSZIVRERGI FSH] MJ
XLIVIMWRSEYHMXGSQQMXXII SJPMWXIHIRXMXMIWVIKEVHMRKVIPEXMSRWLMTWERHSXLIVQEXXIVWXLEX
might, in the firm’s opinion, reasSREFP]FIXLSYKLXXSFIEVSRMRHITIRHIRGI


 *MVQW WLSYPH IWXEFPMWL TSPMGMIW ERH TVSGIHYVIW VIPEXMRK XS MRHITIRHIRGI
GSQQYRMGEXMSRW[MXLEYHMXGSQQMXXIIWSVSXLIVWGLEVKIH[MXLKSZIVRERGI-RXLIGEWISJ
XLI EYHMX SJ PMWXIH IRXMXMIW XLI JMVQ WLSYPH GSQQYRMGEXI SVEPP] ERH MR [VMXMRK EX PIEWX
ERRYEPP]EPPVIPEXMSRWLMTWERHSXLIVQEXXIVWFIX[IIRXLIJMVQRIX[SVOJMVQWERHXLIEYHMX
client that in the firm’s professional judgment may reasonably be thought to bear on
MRHITIRHIRGI 1EXXIVW XS FI GSQQYRMGEXIH[MPP ZEV] MR IEGL GMVGYQWXERGIERH WLSYPH FI
HIGMHIHF]XLIJMVQFYXWLSYPHKIRIVEPP]EHHVIWWXLIVIPIZERXQEXXIVWWIXSYXMRXLMWWIGXMSR
8.41 Safeguards within the firm’s own systems and procedures may include firm[MHI
WEJIKYEVHWWYGLEWXLIJSPPS[MRK
E  *MVQ PIEHIVWLMT XLEX WXVIWWIW XLI MQTSVXERGI SJ MRHITIRHIRGI ERH XLI I\TIGXEXMSR XLEX
QIQFIVWSJEWWYVERGIXIEQW[MPPEGXMRXLITYFPMGMRXIVIWX

F  4SPMGMIW ERH TVSGIHYVIW XS MQTPIQIRX ERH QSRMXSV UYEPMX] GSRXVSP SJ EWWYVERGI
IRKEKIQIRXW
G  (SGYQIRXIH MRHITIRHIRGI TSPMGMIW VIKEVHMRK XLI MHIRXMJMGEXMSR SJ XLVIEXW XS
MRHITIRHIRGIXLIIZEPYEXMSRSJXLIWMKRMJMGERGISJXLIWIXLVIEXWERHXLIMHIRXMJMGEXMSRERH
ETTPMGEXMSRSJWEJIKYEVHWXSIPMQMREXISVVIHYGIXLIXLVIEXWSXLIVXLERXLSWIXLEXEVIGPIEVP]
MRWMKRMJMGERXXSEREGGITXEFPIPIZIP

H  -RXIVREP TSPMGMIW ERH TVSGIHYVIW XS QSRMXSV GSQTPMERGI [MXL JMVQ TSPMGMIW ERH
TVSGIHYVIWEWXLI]VIPEXIXSMRHITIRHIRGI

I  4SPMGMIW ERH TVSGIHYVIW XLEX [MPP IREFPI XLI MHIRXMJMGEXMSR SJ MRXIVIWXW SV VIPEXMSRWLMTW
FIX[IIRXLIJMVQSVQIQFIVWSJXLIEWWYVERGIXIEQERHEWWYVERGIGPMIRXW
J  4SPMGMIW ERH TVSGIHYVIW XS QSRMXSV ERH MJ RIGIWWEV] QEREKI XLI VIPMERGI SR VIZIRYI
VIGIMZIHJVSQEWMRKPIEWWYVERGIGPMIRX

K 9WMRKHMJJIVIRXTEVXRIVWERHXIEQW[MXLWITEVEXIVITSVXMRKPMRIWJSVXLITVSZMWMSRSJRSR
EWWYVERGIWIVZMGIWXSEREWWYVERGIGPMIRX
L  4SPMGMIW ERH TVSGIHYVIW XS TVSLMFMX MRHMZMHYEPW [LS EVI RSX QIQFIVW SJ XLIEWWYVERGI
XIEQJVSQMRJPYIRGMRKXLISYXGSQISJXLIEWWYVERGIIRKEKIQIRX
(i) Timely communication of a firm’s policies and procedures, and any changes thereto, to
EPPTEVXRIVWERHTVSJIWWMSREPWXEJJMRGPYHMRKETTVSTVMEXIXVEMRMRKERHIHYGEXMSRXLIVISR
N (IWMKREXMRKEQIQFIVSJWIRMSVQEREKIQIRXEWVIWTSRWMFPIJSVSZIVWIIMRKXLIEHIUYEXI
JYRGXMSRMRKSJXLIWEJIKYEVHMRKW]WXIQ

O 1IERWSJEHZMWMRKTEVXRIVWERHTVSJIWWMSREPWXEJJSJXLSWIEWWYVERGIGPMIRXWERHVIPEXIH
IRXMXMIWJVSQ[LMGLXLI]QYWXFIMRHITIRHIRX
P %HMWGMTPMREV]QIGLERMWQXSTVSQSXIGSQTPMERGI[MXLTSPMGMIWERHTVSGIHYVIWERH
Q  4SPMGMIW ERH TVSGIHYVIW XS IQTS[IV WXEJJ XS GSQQYRMGEXI XS WIRMSV PIZIPW [MXLMR XLI
JMVQER]MWWYISJMRHITIRHIRGIERHSFNIGXMZMX]XLEXGSRGIVRWXLIQXLMWMRGPYHIWMRJSVQMRK
WXEJJSJXLITVSGIHYVIWSTIRXSXLIQ
 7EJIKYards within the firm’s own systems and procedures may include engagement
WTIGMJMGWEJIKYEVHWWYGLEWXLIJSPPS[MRK


E  -RZSPZMRK ER EHHMXMSREP TVSJIWWMSREP EGGSYRXERX XS VIZMI[ XLI [SVO HSRI SV SXLIV[MWI
EHZMWI EW RIGIWWEV] 8LMW MRHMZMHYEP GSYPH FI WSQISRI JVSQ SYXWMHI XLI JMVQ SV RIX[SVO
JMVQSVWSQISRI[MXLMRXLIJMVQSVRIX[SVOJMVQ[LS[EWRSXSXLIV[MWIEWWSGMEXIH[MXLXLI
EWWYVERGIXIEQ

F  'SRWYPXMRK E XLMVH TEVX] WYGL EW E GSQQMXXIISJ MRHITIRHIRX HMVIGXSVW E TVSJIWWMSREP

VIKYPEXSV]FSH]SVERSXLIVTVSJIWWMSREPEGGSYRXERX
G 6SXEXMSRSJWIRMSVTIVWSRRIP
H  (MWGYWWMRK MRHITIRHIRGI MWWYIW [MXL XLI EYHMX GSQQMXXII SV SXLIVW GLEVKIH [MXL
KSZIVRERGI
I  (MWGPSWMRK XS XLI EYHMX GSQQMXXII SV SXLIVW GLEVKIH [MXL KSZIVRERGI XLI REXYVI SJ
WIVZMGIWTVSZMHIHERHI\XIRXSJJIIWGLEVKIH
J  4SPMGMIW ERH TVSGIHYVIW XS IRWYVI QIQFIVW SJ XLI EWWYVERGI XIEQ HS RSX QEOI SV
EWWYQIVIWTSRWMFMPMX]JSVQEREKIQIRXHIGMWMSRWJSVXLIEWWYVERGIGPMIRX
K -RZSPZMRKERSXLIVJMVQXSTIVJSVQSVVITIVJSVQTEVXSJXLIEWWYVERGIIRKEKIQIRX
L -RZSPZMRKERSXLIVJMVQXSVITIVJSVQXLIRSREWWYVERGIWIVZMGIXSXLII\XIRXRIGIWWEV]XS
IREFPIMXXSXEOIVIWTSRWMFMPMX]JSVXLEXWIVZMGIERH

M  6IQSZMRK ER MRHMZMHYEP JVSQ XLI EWWYVERGI XIEQ [LIR XLEX MRHMZMHYEP’s financial
MRXIVIWXWSVVIPEXMSRWLMTWGVIEXIEXLVIEXXSMRHITIRHIRGI
 ;LIR XLI WEJIKYEVHW EZEMPEFPI WYGL EW XLSWI HIWGVMFIH MR TEVEKVETLW  XLVSYKL
EFSZIEVIMRWYJJMGMIRXXSIPMQMREXIXLIXLVIEXWXSMRHITIRHIRGISVXSVIHYGIXLIQXSER
EGGITXEFPIPIZIPSV[LIREJMVQGLSSWIWRSXXSIPMQMREXIXLIEGXMZMXMIWSVMRXIVIWXWGVIEXMRK
XLIXLVIEXXLISRP]GSYVWISJEGXMSREZEMPEFPI[MPPFIXLIVIJYWEPXSTIVJSVQSV[MXLHVE[EP
JVSQXLIEWWYVERGIIRKEKIQIRX

)2+%+)1)284)6-3(
 8LI QIQFIVW SJ XLI EWWYVERGI XIEQ ERH XLI JMVQ WLSYPH FI MRHITIRHIRX SJ XLI
EWWYVERGI GPMIRX HYVMRK XLI TIVMSH SJ XLI EWWYVERGI IRKEKIQIRX 8LI TIVMSH SJ XLI
IRKEKIQIRXWXEVXW[LIRXLIEWWYVERGIXIEQFIKMRWXSTIVJSVQEWWYVERGIWIVZMGIWERHIRHW
[LIRXLIEWWYVERGIVITSVXMWMWWYIHI\GITX[LIRXLIEWWYVERGIIRKEKIQIRXMWSJEVIGYVVMRK
REXYVI -J XLI EWWYVERGI IRKEKIQIRX MW I\TIGXIH XS VIGYV XLI TIVMSH SJ XLI EWWYVERGI
IRKEKIQIRXIRHW[MXLXLIRSXMJMGEXMSRF]IMXLIVTEVX]XLEXXLITVSJIWWMSREPVIPEXMSRWLMTLEW
XIVQMREXIHSVXLIMWWYERGISJXLIJMREPEWWYVERGIVITSVX[LMGLIZIVMWPEXIV
-RXLIGEWISJEREYHMXIRKEKIQIRXXLIIRKEKIQIRXTIVMSHMRGPYHIWXLITIVMSHGSZIVIH
F]XLIJMRERGMEPWXEXIQIRXWVITSVXIHSRF]XLIJMVQ;LIRERIRXMX]FIGSQIWEREYHMXGPMIRX
HYVMRKSVEJXIVXLITIVMSHGSZIVIHF]XLIJMRERGMEPWXEXIQIRXWXLEXXLIJMVQ[MPPVITSVXSRXLI
JMVQWLSYPHGSRWMHIV[LIXLIVER]XLVIEXWXSMRHITIRHIRGIQE]FIGVIEXIHF]
E  *MRERGMEP SV FYWMRIWW VIPEXMSRWLMTW [MXL XLI EYHMX GPMIRX HYVMRK SV EJXIV XLI TIVMSH
GSZIVIHF]XLIJMRERGMEPWXEXIQIRXWFYXTVMSVXSXLIEGGITXERGISJXLIEYHMXIRKEKIQIRXSV
F 4VIZMSYWWIVZMGIWTVSZMHIHXSXLIEYHMXGPMIRX


7MQMPEVP]MRXLIGEWISJEREWWYVERGIIRKEKIQIRXXLEXMWRSXEREYHMXIRKEKIQIRXXLIJMVQ
WLSYPH GSRWMHIV [LIXLIV ER] JMRERGMEP SV FYWMRIWW VIPEXMSRWLMTW SV TVIZMSYW WIVZMGIW QE]
GVIEXIXLVIEXWXSMRHITIRHIRGI

 -J RSREWWYVERGIWIVZMGIW[IVI TVSZMHIHXSXLIEYHMXGPMIRX HYVMRKSV EJXIVXLITIVMSH

GSZIVIHF]XLIJMRERGMEPWXEXIQIRXWFYXFIJSVIXLIGSQQIRGIQIRXSJTVSJIWWMSREPWIVZMGIW
MRGSRRIGXMSR[MXLXLIEYHMXERHXLSWIWIVZMGIW[SYPHFITVSLMFMXIHHYVMRKXLITIVMSHSJXLI
EYHMX IRKEKIQIRX GSRWMHIVEXMSR WLSYPH FI KMZIR XS XLI XLVIEXW XS MRHITIRHIRGI MJ ER]
EVMWMRKJVSQXLSWIWIVZMGIW-JXLIXLVIEXMWSXLIVXLERGPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPH
FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP 7YGL
WEJIKYEVHWQMKLXMRGPYHI

E  (MWGYWWMRK MRHITIRHIRGI MWWYIW VIPEXIH XS XLI TVSZMWMSR SJ XLI RSREWWYVERGI WIVZMGIW
[MXLXLSWIGLEVKIH[MXLKSZIVRERGISJXLIGPMIRXWYGLEWXLIEYHMXGSQQMXXII
(b) Obtaining the audit client’s acknowledgement of responsibility for the results of the non
EWWYVERGIWIVZMGIW

G 4VIGPYHMRKTIVWSRRIP[LSTVSZMHIHXLIRSREWWYVERGIWIVZMGIWJVSQTEVXMGMTEXMRKMRXLI
EYHMXIRKEKIQIRXERH

H  )RKEKMRK ERSXLIV JMVQ XS VIZMI[ XLI VIWYPXW SJ XLI RSREWWYVERGI WIVZMGIW SV LEZMRK
ERSXLIV JMVQ VITIVJSVQ XLI RSREWWYVERGI WIVZMGIW XS XLI I\XIRX RIGIWWEV] XS IREFPI MX XS
XEOIVIWTSRWMFMPMX]JSVXLSWIWIVZMGIW
2SREWWYVERGIWIVZMGIWTVSZMHIHXSERSRlisted audit client will not impair the firm’s
MRHITIRHIRGI[LIRXLIGPMIRXFIGSQIWEPMWXIHIRXMX]TVSZMHIH

E 8LITVIZMSYWRSREWWYVERGIWIVZMGIW[IVITIVQMWWMFPIYRHIVXLMWWIGXMSRJSVRSRPMWXIH
EYHMXGPMIRXW
F  8LI WIVZMGIW [MPP FI XIVQMREXIH [MXLMR E VIEWSREFPI TIVMSH SJ XMQI SJ XLI GPMIRX
FIGSQMRKEPMWXIHIRXMX]MJXLI]EVIMQTIVQMWWMFPIYRHIVXLMWWIGXMSRJSVPMWXIHEYHMXGPMIRXW
ERH

G  8LI JMVQ LEW MQTPIQIRXIH ETTVSTVMEXI WEJIKYEVHW XS IPMQMREXI ER] XLVIEXW XS
MRHITIRHIRGIEVMWMRKJVSQXLITVIZMSYWWIVZMGIWSVVIHYGIXLIQXSEREGGITXEFPIPIZIP
8LI I\EQTPIW XLEX HMWGYWW XLVIEXW XS MRHITIRHIRGI XLEX QE] FI GVIEXIH F] WTIGMJMG
GMVGYQWXERGIWERHVIPEXMSRWLMTWVIJIVXSTEVEKVETL 


-2863(9'8-32
 8LI JSPPS[MRK I\EQTPIW HIWGVMFI WTIGMJMG GMVGYQWXERGIW ERH VIPEXMSRWLMTW XLEX QE]
GVIEXIXLVIEXWXSMRHITIRHIRGI8LII\EQTPIWHIWGVMFIXLITSXIRXMEPXLVIEXWGVIEXIHERHXLI
WEJIKYEVHWXLEXQE]FIETTVSTVMEXIXSIPMQMREXIXLIXLVIEXWSVVIHYGIXLIQXSEREGGITXEFPI
PIZIP MR IEGL GMVGYQWXERGI 8LI I\EQTPIW EVI RSX EPPMRGPYWMZI -R TVEGXMGI XLI JMVQ
RIX[SVO JMVQW ERH XLI QIQFIVW SJ XLI EWWYVERGI XIEQ [MPP FI VIUYMVIH XS EWWIWW XLI
MQTPMGEXMSRW SJ WMQMPEV FYX HMJJIVIRX GMVGYQWXERGIW ERH VIPEXMSRWLMTW ERH XS HIXIVQMRI
[LIXLIV WEJIKYEVHW MRGPYHMRK XLI WEJIKYEVHW MR TEVEKVETLW  XLVSYKL  GER FI
ETTPMIHXSWEXMWJEGXSVMP]EHHVIWWXLIXLVIEXWXSMRHITIRHIRGI4EVEKVETLWXLVSYKLSJ
XLMWWIGXMSRTVSZMHIGSRGITXYEPKYMHERGIXSEWWMWXMRXLMWTVSGIWW

7SQISJXLII\EQTPIWHIEP[MXLEYHMXGPMIRXW[LMPISXLIVWHIEP[MXLEWWYVERGIGPMIRXW
XLEXEVIRSXEYHMXGPMIRXW8LII\EQTPIWMPPYWXVEXILS[WEJIKYEVHWWLSYPHFIETTPMIHXSJYPJMPP
XLIVIUYMVIQIRXJSV XLIQIQFIVWSJXLIEWWYVERGI XIEQXLIJMVQERHRIX[SVO JMVQW XSFI
MRHITIRHIRXSJEREYHMXGPMIRXERHJSVXLIQIQFIVWSJXLIEWWYVERGIXIEQERHXLIJMVQXSFI
MRHITIRHIRXSJEREWWYVERGIGPMIRXXLEXMWRSXEREYHMXGPMIRX8LII\EQTPIWHSRSXMRGPYHI
EWWYVERGI VITSVXW XS E RSREYHMXEWWYVERGI GPMIRX I\TVIWWP] VIWXVMGXIH JSV YWI F] MHIRXMJMIH
YWIVW %W WXEXIH MR TEVEKVETL  JSV WYGL IRKEKIQIRXW QIQFIVW SJ XLI EWWYVERGI
XIEQ ERH XLIMV MQQIHMEXI ERH GPSWI JEQMP] EVI VIUYMVIH XS FI MRHITIRHIRX SJ XLI
EWWYVERGI GPMIRX*YVXLIVXLIJMVQWLSYPHRSXLEZIEQEXIVMEPJMRERGMEPMRXIVIWXHMVIGX
SVMRHMVIGXMRXLIEWWYVERGIGPMIRX
*-2%2'-%0-28)6)787
 % JMRERGMEP MRXIVIWX MR ER EWWYVERGI GPMIRX QE] GVIEXI E WIPJMRXIVIWX XLVIEX -R
IZEPYEXMRK XLI WMKRMJMGERGI SJ XLI XLVIEX ERH XLI ETTVSTVMEXI WEJIKYEVHW XS FI ETTPMIH XS
IPMQMREXIXLIXLVIEXSVVIHYGIMXXSEREGGITXEFPIPIZIPMXMWRIGIWWEV]XSI\EQMRIXLIREXYVI
SJXLI JMRERGMEP MRXIVIWX 8LMWMRGPYHIW ER IZEPYEXMSR SJ XLI VSPISJ XLI TIVWSR LSPHMRK XLI
JMRERGMEP MRXIVIWX XLI QEXIVMEPMX] SJ XLIJMRERGMEPMRXIVIWX ERH XLI X]TI SJJMRERGMEP MRXIVIWX
HMVIGXSVMRHMVIGX 

;LIRIZEPYEXMRKXLIX]TISJJMRERGMEPMRXIVIWXGSRWMHIVEXMSRWLSYPHFIKMZIRXSXLIJEGX
XLEX JMRERGMEP MRXIVIWXW VERKI JVSQ XLSWI [LIVI XLI MRHMZMHYEP LEW RS GSRXVSP SZIV XLI
MRZIWXQIRX ZILMGPI SV XLI JMRERGMEP MRXIVIWX LIPH IK E QYXYEP JYRH YRMX XVYWX SV WMQMPEV
MRXIVQIHMEV] ZILMGPI  XS XLSWI [LIVI XLI MRHMZMHYEP LEW GSRXVSP SZIV XLI JMRERGMEP MRXIVIWX
IKEWEXVYWXII SVMWEFPIXSMRJPYIRGIMRZIWXQIRXHIGMWMSRW-RIZEPYEXMRKXLIWMKRMJMGERGI
SJER]XLVIEXXSMRHITIRHIRGIMXMWMQTSVXERXXSGSRWMHIVXLIHIKVIISJGSRXVSPSVMRJPYIRGI
XLEX GER FI I\IVGMWIH SZIV XLI MRXIVQIHMEV] XLI JMRERGMEP MRXIVIWX LIPH SV MXW MRZIWXQIRX
WXVEXIK];LIRGSRXVSPI\MWXWXLIJMRERGMEPMRXIVIWXWLSYPHFIGSRWMHIVIHHMVIGX'SRZIVWIP]
[LIRXLILSPHIVSJXLIJMRERGMEPMRXIVIWXLEWRSEFMPMX]XSI\IVGMWIWYGLGSRXVSPXLIJMRERGMEP
MRXIVIWXWLSYPHFIGSRWMHIVIHMRHMVIGX


 -J E QIQFIV SJ XLI EWWYVERGI XIEQ SV XLIMV MQQIHMEXI JEQMP] QIQFIV LEW E
HMVIGX JMRERGMEP MRXIVIWX SV E QEXIVMEP MRHMVIGX JMRERGMEP MRXIVIWX MR XLI EWWYVERGI
GPMIRX XLI WIPJMRXIVIWX XLVIEX GVIEXIH [SYPH FI WS WMKRMJMGERX XLI SRP] WEJIKYEVHW
EZEMPEFPIXSIPMQMREXIXLI XLVIEXSVVIHYGIMXXSEREGGITXEFPIPIZIP[SYPHFIXS
E HMWTSWISJXLIHMVIGXJMRERGMEPMRXIVIWXTVMSVXSXLIMRHMZMHYEPFIGSQMRKEQIQFIV
SJXLIEWWYVERGIXIEQ
F HMWTSWISJXLIMRHMVIGXJMRERGMEPMRXIVIWXMRXSXEPSVHMWTSWISJEWYJJMGMIRXEQSYRXSJMXWS
XLEXXLIVIQEMRMRKMRXIVIWXMWRSPSRKIVQEXIVMEPTVMSVXSXLIMRHMZMHYEPFIGSQMRKEQIQFIV
SJXLIEWWYVERGIXIEQSV

G VIQSZIXLIQIQFIVSJXLIEWWYVERGIXIEQJVSQXLIEWWYVERGIIRKEKIQIRX
-JEQIQFIVSJXLIEWWYVERGIXIEQSVXLIMVMQQIHMEXIJEQMP]QIQFIVVIGIMZIWF][E]
SJJSVI\EQTPIERMRLIVMXERGIKMJXSVEWEVIWYPXSJEQIVKIVEHMVIGXJMRERGMEPMRXIVIWXSVE
QEXIVMEP MRHMVIGX JMRERGMEP MRXIVIWX MR XLI EWWYVERGI GPMIRX E WIPJMRXIVIWX XLVIEX [SYPH FI
GVIEXIH 8LIJSPPS[MRKWEJIKYEVHWWLSYPHFIETTPMIHXSIPMQMREXIXLIXLVIEXSVVIHYGIMX
XSEREGGITXEFPIPIZIP
E HMWTSWMRKSJXLIJMRERGMEPMRXIVIWXEXXLIIEVPMIWXTVEGXMGEPHEXISV
F VIQSZMRKXLIQIQFIVSJXLIEWWYVERGIXIEQJVSQXLIEWWYVERGIIRKEKIQIRX
(YVMRKXLITIVMSHTVMSVXSHMWTSWEPSJXLIJMRERGMEPMRXIVIWXSVXLIVIQSZEPSJXLIMRHMZMHYEP
JVSQXLIEWWYVERGIXIEQGSRWMHIVEXMSRWLSYPHFIKMZIRXS[LIXLIVEHHMXMSREPWEJIKYEVHWEVI
RIGIWWEV]XSVIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI

E HMWGYWWMRKXLIQEXXIV[MXLXLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXII
SV
F MRZSPZMRK ER EHHMXMSREP TVSJIWWMSREP EGGSYRXERX XS VIZMI[XLI[SVO HSRI SVSXLIV[MWI
EHZMWIEWRIGIWWEV]
;LIREQIQFIVSJXLIEWWYVERGIXIEQ ORS[WXLEXLMWSVLIVGPSWIJEQMP]QIQFIVLEW
E HMVIGX JMRERGMEP MRXIVIWX SV E QEXIVMEP MRHMVIGX JMRERGMEP MRXIVIWX MR XLI EWWYVERGIGPMIRXE
WIPJMRXIVIWX XLVIEX QE] FI GVIEXIH -R IZEPYEXMRK XLI WMKRMJMGERGI SJ ER] XLVIEX
GSRWMHIVEXMSRWLSYPHFIKMZIR XSXLIREXYVISJXLIVIPEXMSRWLMTFIX[IIRXLIQIQFIVSJXLI
EWWYVERGI XIEQ ERH XLI GPSWI JEQMP] QIQFIV ERH XLI QEXIVMEPMX] SJ XLIJMRERGMEP MRXIVIWX
3RGIXLIWMKRMJMGERGISJXLIXLVIEXLEWFIIRIZEPYEXIHWEJIKYEVHWWLSYPHFIGSRWMHIVIHERH
ETTPMIHEWRIGIWWEV]7YGLWEJIKYEVHWQMKLXMRGPYHI

E  XLI GPSWI JEQMP] QIQFIV HMWTSWMRK SJ EPP SV E WYJJMGMIRX TSVXMSR SJ XLI JMRERGMEP
MRXIVIWXEXXLIIEVPMIWXTVEGXMGEPHEXI
F HMWGYWWMRKXLIQEXXIV[MXLXLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXII
G MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERX[LSHMHRSXXEOITEVXMRXLIEWWYVERGI
IRKEKIQIRXXSVIZMI[XLI[SVOHSRIF]XLIQIQFIVSJXLIEWWYVERGIXIEQ[MXLXLIGPSWI
JEQMP]VIPEXMSRWLMTSVSXLIV[MWIEHZMWIEWRIGIWWEV]SV
H VIQSZMRKXLIMRHMZMHYEPJVSQXLIEWWYVERGIIRKEKIQIRX


;LIREJMVQSVEQIQFIVSJXLIEWWYVERGIXIEQLSPHWEHMVIGXJMRERGMEPMRXIVIWXSVE
QEXIVMEP MRHMVIGX JMRERGMEP MRXIVIWX MRXLIEWWYVERGIGPMIRXEW EXVYWXIIEWIPJMRXIVIWXXLVIEX
QE]FIGVIEXIHF]XLITSWWMFPIMRJPYIRGISJXLIXVYWXSZIVXLIEWWYVERGIGPMIRX%GGSVHMRKP]
WYGLERMRXIVIWXWLSYPHSRP]FILIPH[LIR

E XLIQIQFIVSJXLIEWWYVERGIXIEQERMQQIHMEXIJEQMP]QIQFIVSJXLIQIQFIVSJXLI
EWWYVERGIXIEQERHXLIJMVQEVIRSXFIRIJMGMEVMIWSJXLIXVYWX
F XLIMRXIVIWXLIPHF]XLIXVYWXMRXLIEWWYVERGIGPMIRXMWRSXQEXIVMEPXSXLIXVYWX
G XLIXVYWXMWRSXEFPIXSI\IVGMWIWMKRMJMGERXMRJPYIRGISZIVXLIEWWYVERGIGPMIRXERH

H XLIQIQFIVSJXLIEWWYVERGIXIEQSVXLIJMVQHSIWRSXLEZIWMKRMJMGERXMRJPYIRGISZIV
ER]MRZIWXQIRXHIGMWMSRMRZSPZMRKEJMRERGMEPMRXIVIWXMRXLIEWWYVERGIGPMIRX
'SRWMHIVEXMSRWLSYPHFIKMZIRXS[LIXLIVEWIPJMRXIVIWXXLVIEXQE]FIGVIEXIHF]XLI
JMRERGMEP MRXIVIWXW SJ MRHMZMHYEPW SYXWMHI SJ XLI EWWYVERGI XIEQ ERH XLIMV MQQIHMEXI ERH
GPSWIJEQMP]QIQFIVW7YGLMRHMZMHYEPW[SYPHMRGPYHI
E  TEVXRIVW ERHXLIMVMQQIHMEXIJEQMP] QIQFIVW[LSEVI RSXQIQFIVWSJXLI EWWYVERGI
XIEQ
F TEVXRIVWERHQEREKIVMEPIQTPS]IIW[LSTVSZMHIRSREWWYVERGIWIVZMGIWXS XLIEWWYVERGI
GPMIRXERH

G MRHMZMHYEPW[LSLEZIEGPSWITIVWSREPVIPEXMSRWLMT[MXLEQIQFIVSJXLIEWWYVERGIXIEQ
;LIXLIVXLIMRXIVIWXWLIPHF]WYGLMRHMZMHYEPWQE]GVIEXIEWIPJMRXIVIWXXLVIEX[MPPHITIRH
YTSRJEGXSVWWYGLEW
(a) the firm’s organMWEXMSREPSTIVEXMRKERHVITSVXMRKWXVYGXYVIERH

F XLIREXYVISJXLI VIPEXMSRWLMTFIX[IIR XLI MRHMZMHYEP ERHXLIQIQFIVSJXLIEWWYVERGI

XIEQ

8LI WMKRMJMGERGI SJ XLI XLVIEX WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER GPIEVP]
MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIXLVIEX
XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
E [LIVIETTVSTVMEXITSPMGMIWXSVIWXVMGXTISTPIJVSQLSPHMRKWYGLMRXIVIWXW
F HMWGYWWMRKXLIQEXXIV[MXLXLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXII
SV
G MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERX[LSHMHRSXXEOITEVXMRXLIEWWYVERGI
IRKEKIQIRXXSVIZMI[XLI[SVOHSRISVSXLIV[MWIEHZMWIEWRIGIWWEV]
 %R MREHZIVXIRX ZMSPEXMSR SJ XLMW WIGXMSR EW MX VIPEXIW XS E JMRERGMEP MRXIVIWX MR ER
EWWYVERGI GPMIRX [SYPH RSX MQTEMV XLI MRHITIRHIRGI SJ XLI JMVQ XLI RIX[SVO JMVQ SV E
QIQFIVSJXLIEWWYVERGIXIEQ[LIR
E XLIJMVQERHXLIRIX[SVOJMVQLEWIWXEFPMWLIHTSPMGMIWERHTVSGIHYVIWXLEXVIUYMVIEPP
TVSJIWWMSREPW XS VITSVX TVSQTXP] XS XLI JMVQ ER] FVIEGLIW VIWYPXMRK JVSQ XLI TYVGLEWI
MRLIVMXERGISVSXLIVEGUYMWMXMSRSJEJMRERGMEPMRXIVIWXMRXLIEWWYVERGIGPMIRX


F  XLI JMVQ ERH XLI RIX[SVO JMVQ TVSQTXP] RSXMJMIW XLI TVSJIWWMSREP XLEX XLI JMRERGMEP
MRXIVIWXWLSYPHFIHMWTSWIHSJERH

G  XLI HMWTSWEP SGGYVW EX XLI IEVPMIWX TVEGXMGEP HEXI EJXIV MHIRXMJMGEXMSRSJXLI MWWYI SV XLI
TVSJIWWMSREPMWVIQSZIHJVSQXLIEWWYVERGIXIEQ
 ;LIR ER MREHZIVXIRX ZMSPEXMSR SJ XLMW WIGXMSR VIPEXMRK XS E JMRERGMEP MRXIVIWX MR ER
EWWYVERGI GPMIRX LEW SGGYVVIH XLIJMVQ WLSYPHGSRWMHIV[LIXLIVER] WEJIKYEVHW WLSYPH FI
ETTPMIH7YGLWEJIKYEVHWQMKLXMRGPYHI
E  MRZSPZMRK EREHHMXMSREPTVSJIWWMSREPEGGSYRXERX [LS HMH RSXXEOI TEVXMRXLIEWWYVERGI
IRKEKIQIRXXSVIZMI[XLI[SVOHSRIF]XLIQIQFIVSJXLIEWWYVERGIXIEQSV
F I\GPYHMRKXLIMRHMZMHYEPJVSQER]WYFWXERXMZIHIGMWMSRQEOMRKGSRGIVRMRKXLIEWWYVERGI
IRKEKIQIRX

-JEJMVQSVERIX[SVOJMVQLEWEHMVIGXJMRERGMEPMRXIVIWXMREREYHMXGPMIRXSJXLI
JMVQXLIWIPJMRXIVIWXXLVIEXGVIEXIH[SYPHFIWSWMKRMJMGERXRSWEJIKYEVHGSYPHVIHYGI
XLIXLVIEXXSEREGGITXEFPIPIZIP 'SRWIUYIRXP]HMWTSWEPSJXLIJMRERGMEPMRXIVIWX[SYPH
FIXLISRP]EGXMSRETTVSTVMEXIXSTIVQMXXLIJMVQXSTIVJSVQXLI IRKEKIQIRX
-JEJMVQSVERIX[SVOJMVQLEWEQEXIVMEPMRHMVIGXJMRERGMEPMRXIVIWXMREREYHMXGPMIRXSJ
XLIJMVQEWIPJMRXIVIWXXLVIEXMWEPWSGVIEXIH8LISRP]EGXMSRWETTVSTVMEXIXSTIVQMXXLIJMVQ
XSTIVJSVQXLIIRKEKIQIRX[SYPHFIJSVXLIJMVQSVXLIRIX[SVOJMVQIMXLIVXSHMWTSWISJ
XLIMRHMVIGXMRXIVIWXMRXSXEPSVXSHMWTSWISJEWYJJMGMIRXEQSYRXSJMXWSXLEXXLIVIQEMRMRK
MRXIVIWXMWRSPSRKIVQEXIVMEP
 -J E JMVQ SV E RIX[SVO JMVQ LEW E QEXIVMEP JMRERGMEP MRXIVIWX MR ER IRXMX] XLEX LEW E
GSRXVSPPMRKMRXIVIWXMREREYHMXGPMIRXXLIWIPJMRXIVIWXXLVIEXGVIEXIH[SYPHFIWSWMKRMJMGERX
RSWEJIKYEVHGSYPHVIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP8LISRP]EGXMSRWETTVSTVMEXIXS
TIVQMXXLIJMVQXSTIVJSVQXLIIRKEKIQIRX[SYPHFIJSVXLIJMVQSVXLIRIX[SVOJMVQIMXLIV
XSHMWTSWISJXLIJMRERGMEPMRXIVIWXMRXSXEPSVXSHMWTSWISJEWYJJMGMIRXEQSYRXSJMXWSXLEX
XLIVIQEMRMRKMRXIVIWXMWRSPSRKIVQEXIVMEP

-JXLIVIXMVIQIRXFIRIJMXWTPERSJEJMVQSVRIX[SVOJMVQLEWEJMRERGMEPMRXIVIWXMRER
EYHMXGPMIRXEWIPJMRXIVIWXXLVIEXQE]FIGVIEXIH%GGSVHMRKP]XLIWMKRMJMGERGISJER]WYGL
XLVIEX GVIEXIH WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER GPIEVP] MRWMKRMJMGERX
WEJIKYEVHWWLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSIPMQMREXIXLIXLVIEXSVVIHYGIMX
XSEREGGITXEFPIPIZIP
 -J SXLIV TEVXRIVW MRGPYHMRK TEVXRIVW [LS HS RSX TIVJSVQ EWWYVERGI IRKEKIQIRXW SV
XLIMV MQQIHMEXI JEQMP] MR XLI SJJMGI MR [LMGL XLI PIEH IRKEKIQIRX TEVXRIV TVEGXMGIW MR
GSRRIGXMSR [MXL XLI EYHMX LSPH E HMVIGX JMRERGMEP MRXIVIWX SV E QEXIVMEP MRHMVIGX JMRERGMEP
MRXIVIWX MR XLEX EYHMX GPMIRX XLI WIPJMRXIVIWX XLVIEX GVIEXIH [SYPH FI WS WMKRMJMGERX RS
WEJIKYEVH GSYPH VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP %GGSVHMRKP] WYGL TEVXRIVW SV
XLIMV MQQIHMEXI JEQMP] WLSYPH RSX LSPH ER] WYGL JMRERGMEP MRXIVIWXW MRWYGL ER EYHMX
GPMIRX
8LISJJMGIMR[LMGLXLIPIEHIRKEKIQIRXTEVXRIVTVEGXMGIWMRGSRRIGXMSR[MXLXLIEYHMX
MW RSX RIGIWWEVMP] XLI SJJMGIXS[LMGL XLEX TEVXRIV MW EWWMKRIH %GGSVHMRKP] [LIRXLI PIEH
IRKEKIQIRX TEVXRIV MW PSGEXIH MR E HMJJIVIRX SJJMGI JVSQ XLEX SJ XLI SXLIV QIQFIVW SJ XLI
EWWYVERGIXIEQNYHKQIRXWLSYPHFIYWIHXSHIXIVQMRIMR[LMGLSJJMGIXLITEVXRIVTVEGXMGIW
MRGSRRIGXMSR[MXLXLEXEYHMX


-JSXLIVTEVXRIVWERHQEREKIVMEPIQTPS]IIW[LSTVSZMHIRSREWWYVERGIWIVZMGIWXSXLI
EYHMX GPMIRX I\GITX XLSWI [LSWI MRZSPZIQIRX MW GPIEVP] MRWMKRMJMGERX SV XLIMV MQQIHMEXI
JEQMP] LSPH E HMVIGX JMRERGMEP MRXIVIWX SV E QEXIVMEP MRHMVIGX JMRERGMEP MRXIVIWX MR XLI EYHMX
GPMIRXXLIWIPJMRXIVIWXXLVIEXGVIEXIH[SYPHFIWSWMKRMJMGERXRSWEJIKYEVHGSYPHVIHYGIXLI
XLVIEXXSEREGGITXEFPIPIZIP%GGSVHMRKP]WYGLTIVWSRRIPSVXLIMVMQQIHMEXIJEQMP]WLSYPH
RSXLSPHER]WYGLJMRERGMEPMRXIVIWXWMRWYGLEREYHMXGPMIRX
%JMRERGMEPMRXIVIWXMREREYHMXGPMIRXXLEXMWLIPHF]ERMQQIHMEXIJEQMP]QIQFIVSJE
ETEVXRIVPSGEXIHMRXLISJJMGIMR[LMGLXLIPIEHIRKEKIQIRXTEVXRIVTVEGXMGIWMRGSRRIGXMSR
[MXL XLI EYHMX SV F  E TEVXRIV SV QEREKIVMEP IQTPS]II [LS TVSZMHIW RSREWWYVERGI
WIVZMGIWXSXLIEYHMXGPMIRXMWRSXGSRWMHIVIHXSGVIEXIERYREGGITXEFPIXLVIEXTVSZMHIHMXMW
VIGIMZIHEW EVIWYPXSJXLIMV IQTPS]QIRXVMKLXW IK TIRWMSRVMKLXWSV WLEVI STXMSRW ERH
[LIVIRIGIWWEV]ETTVSTVMEXIWEJIKYEVHWEVIETTPMIHXSVIHYGIER]XLVIEXXSMRHITIRHIRGIXS
EREGGITXEFPIPIZIP

%WIPJMRXIVIWXXLVIEXQE]FIGVIEXIHMJXLIJMVQSVXLIRIX[SVOJMVQSVEQIQFIVSJ
XLIEWWYVERGIXIEQLEWERMRXIVIWXMRERIRXMX]ERHEREYHMXGPMIRXSVEHMVIGXSVSJJMGIVSV
GSRXVSPPMRK S[RIV XLIVISJ EPWS LEW ER MRZIWXQIRX MR XLEX IRXMX] -RHITIRHIRGI MW RSX
GSQTVSQMWIH [MXL VIWTIGX XS XLI EYHMX GPMIRX MJ XLI VIWTIGXMZI MRXIVIWXW SJ XLI JMVQ XLI
RIX[SVOJMVQSVQIQFIVSJXLIEWWYVERGIXIEQERHXLIEYHMXGPMIRXSVHMVIGXSVSJJMGIVSV
GSRXVSPPMRK S[RIV XLIVISJ EVI FSXL MQQEXIVMEP ERH XLI EYHMX GPMIRX GERRSX I\IVGMWI
WMKRMJMGERX MRJPYIRGI SZIV XLI IRXMX] -J ER MRXIVIWX MW QEXIVMEP XS IMXLIV XLI JMVQ XLI
RIX[SVOJMVQSVXLIEYHMXGPMIRXERHXLIEYHMXGPMIRXGERI\IVGMWIWMKRMJMGERXMRJPYIRGI
SZIVXLIIRXMX]RSWEJIKYEVHWEVIEZEMPEFPIXSVIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP
ERH XLI JMVQ XLI RIX[SVO JMVQ WLSYPH IMXLIV HMWTSWI SJ XLI MRXIVIWX SV HIGPMRI XLI
EYHMX IRKEKIQIRX %R] QIQFIV SJ XLI EWWYVERGI XIEQ [MXL WYGL E QEXIVMEP MRXIVIWX
WLSYPHIMXLIV

E HMWTSWISJXLIMRXIVIWX
F  HMWTSWI SJ E WYJJMGMIRX EQSYRX SJ XLI MRXIVIWX WS XLEX XLI VIQEMRMRK MRXIVIWXMW RS
PSRKIVQEXIVMEPSV

G [MXLHVE[JVSQXLIEYHMX
-JEJMVQLEWEHMVIGXJMRERGMEPMRXIVIWXMREREWWYVERGIGPMIRXXLEXMWRSXEREYHMX
GPMIRXXLIWIPJMRXIVIWXXLVIEXGVIEXIH[SYPHFIWSWMKRMJMGERXRSWEJIKYEVHGSYPHVIHYGI
XLIXLVIEXXSEREGGITXEFPIPIZIP'SRWIUYIRXP]HMWTSWEPSJXLIJMRERGMEPMRXIVIWX[SYPH
FIXLISRP]EGXMSRETTVSTVMEXIXSTIVQMXXLIJMVQXSTIVJSVQXLIIRKEKIQIRX
-JEJMVQLEWEQEXIVMEPMRHMVIGXJMRERGMEPMRXIVIWXMREREWWYVERGIGPMIRXXLEXMWRSX
ER EYHMX GPMIRX E WIPJMRXIVIWX XLVIEX MW EPWS GVIEXIH 8LI SRP] EGXMSR ETTVSTVMEXI XS
TIVQMXXLIJMVQXSTIVJSVQXLIIRKEKIQIRX[SYPHFIJSVXLIJMVQXSIMXLIVHMWTSWISJ
XLI MRHMVIGX MRXIVIWX MR XSXEP SV XS HMWTSWI SJ E WYJJMGMIRX EQSYRX SJ MX WS XLEX XLI
VIQEMRMRKMRXIVIWXMWRSPSRKIVQEXIVMEP
-JEJMVQLEWEQEXIVMEPJMRERGMEPMRXIVIWXMRERIRXMX]XLEXLEWEGSRXVSPPMRKMRXIVIWXMRER
EWWYVERGI GPMIRX XLEX MW RSX ER EYHMX GPMIRX XLI WIPJMRXIVIWX XLVIEX GVIEXIH [SYPH FI WS
WMKRMJMGERX RS WEJIKYEVH GSYPH VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP 8LI SRP] EGXMSR
ETTVSTVMEXI XS TIVQMX XLI JMVQXS TIVJSVQ XLI IRKEKIQIRX [SYPH FI JSV XLI JMVQ IMXLIVXS
HMWTSWISJXLIJMRERGMEPMRXIVIWXMRXSXEPSVXSHMWTSWISJEWYJJMGMIRXEQSYRXSJMXWSXLEXXLI
VIQEMRMRKMRXIVIWXMWRSPSRKIVQEXIVMEP


 ;LIR E VIWXVMGXIH YWI VITSVX JSV ER EWWYVERGI IRKEKIQIRX XLEX MW RSX ER EYHMX
IRKEKIQIRXMWMWWYIHI\GITXMSRWXSXLITVSZMWMSRWMRTEVEKVETLWXLVSYKLERH
XLVSYKLEVIWIXSYXMR

03%27%2(+9%6%28))7
%PSERJVSQSVEKYEVERXIIXLIVISJF]EREWWYVERGIGPMIRXXLEXMWEFEROSVEWMQMPEV
MRWXMXYXMSRXSXLIJMVQ[SYPHRSXGVIEXIEXLVIEXXSMRHITIRHIRGITVSZMHIHXLIPSERMWQEHI
YRHIVRSVQEPPIRHMRKTVSGIHYVIWXIVQWERHVIUYMVIQIRXWERHXLIPSERMWMQQEXIVMEPXSFSXL
XLIJMVQERHXLIEWWYVERGIGPMIRX-JXLIPSERMWQEXIVMEPXSXLIEWWYVERGIGPMIRXSVXLIJMVQMX
QE] FI TSWWMFPI XLVSYKL XLI ETTPMGEXMSR SJ WEJIKYEVHW XS VIHYGI XLI WIPJMRXIVIWX XLVIEX
GVIEXIH XS ER EGGITXEFPI PIZIP 7YGL WEJIKYEVHW QMKLX MRGPYHI MRZSPZMRK ER EHHMXMSREP
TVSJIWWMSREP EGGSYRXERX JVSQ SYXWMHI XLI JMVQ SV RIX[SVO JMVQ XS VIZMI[ XLI [SVO
TIVJSVQIH
%PSERJVSQSVEKYEVERXIIXLIVISJF]EREWWYVERGIGPMIRXXLEXMWEFEROSVEWMQMPEV
MRWXMXYXMSRXSEQIQFIVSJXLIEWWYVERGIXIEQSVXLIMVMQQIHMEXIJEQMP][SYPHRSXGVIEXIE
XLVIEX XS MRHITIRHIRGI TVSZMHIHXLI PSERMWQEHI YRHIVRSVQEP PIRHMRK TVSGIHYVIW XIVQW
ERH VIUYMVIQIRXW )\EQTPIW SJ WYGL PSERW MRGPYHI LSQI QSVXKEKIW FERO SZIVHVEJXW GEV
PSERWERHGVIHMXGEVHFEPERGIW

 7MQMPEVP] HITSWMXW QEHI F] SV FVSOIVEKI EGGSYRXW SJ E JMVQ SV E QIQFIV SJ XLI
EWWYVERGIXIEQ[MXLEREWWYVERGIGPMIRXXLEXMWEFEROFVSOIVSVWMQMPEVMRWXMXYXMSR[SYPH
RSX GVIEXI E XLVIEX XS MRHITIRHIRGI TVSZMHIH XLI HITSWMX SV EGGSYRX MW LIPH YRHIV RSVQEP
GSQQIVGMEPXIVQW
 -J XLI JMVQ SVE QIQFIVSJ XLIEWWYVERGIXIEQ QEOIWEPSERXS EREWWYVERGIGPMIRX
that is not a bank or similar institution, or guarantees such an assurance client’s borrowing,
XLI WIPJMRXIVIWX XLVIEXGVIEXIH [SYPHFI WS WMKRMJMGERX RS WEJIKYEVHGSYPHVIHYGI XLIPSER
JVSQSVXLIFSVVS[MRKWKYEVERXIIHF]EREWWYVERGIGPMIRXMRXSXEPXLVIEXXSEREGGITXEFPI
PIZIP8LISRP]EGXMSRETTVSTVMEXIXSTIVQMXXLIJMVQXSTIVJSVQXLIIRKEKIQIRX[SYPHFI
JSV XLI JMVQ SV E QIQFIV SJ XLI EWWYVERGI XIEQ XS EVVERKI XS GPIEV XLI PSER QEHI XS SV
KYEVERXIIW KMZIR EKEMRWX XLI FSVVS[MRKW F] ER EWWYVERGI GPMIRX MR XSXEP SV XS EVVERKI XS
GPIEVEWYJJMGMIRXEQSYRXSJMXWSXLEXXLIVIQEMRMRKEQSYRXMWRSPSRKIVQEXIVMEP
7MQMPEVP]MJXLIJMVQSVEQIQFIVSJXLIEWWYVERGIXIEQEGGITXWEPSERJVSQSVLEW
FSVVS[MRKWKYEVERXIIHF] EREWWYVERGIGPMIRXXLEXMWRSXEFEROSVWMQMPEVMRWXMXYXMSRXLI
WIPJMRXIVIWXXLVIEXGVIEXIH[SYPHFIWSWMKRMJMGERXRSWEJIKYEVHGSYPHVIHYGIXLIXLVIEXXSER
EGGITXEFPIPIZIP8LISRP]EGXMSRETTVSTVMEXIXSTIVQMXXLIJMVQXSTIVJSVQXLIIRKEKIQIRX
[SYPHFIJSVXLIJMVQSVEQIQFIVSJXLIEWWYVERGIXIEQXSHMWTSWISJXLIPSERJVSQSVXLI
FSVVS[MRKWKYEVERXIIHF]EREWWYVERGIGPMIRXMRXSXEP
8LII\EQTPIWMRTEVEKVETLWXLVSYKLVIPEXIXSPSERWERHKYEVERXIIWFIX[IIR
XLIJMVQERHEREWWYVERGIGPMIRX-RXLIGEWISJEREYHMXIRKEKIQIRXXLITVSZMWMSRWWLSYPH
FIETTPMIHXSXLIJMVQEPPRIX[SVOJMVQWERHXLIEYHMXGPMIRX

'037)&97-2)776)0%8-327,-47;-8,8,)%7796%2')'0-)287
%GPSWIFYWMRIWWVIPEXMSRWLMTFIX[IIREJMVQSVEQIQFIVSJXLIEWWYVERGIXIEQERH
XLIEWWYVERGI GPMIRX SV MXW QEREKIQIRX SV FIX[IIRXLIJMVQE RIX[SVO JMVQ ERHER EYHMX
GPMIRX[MPPMRZSPZIEGSQQIVGMEPSVGSQQSRJMRERGMEPMRXIVIWXERHQE]GVIEXIWIPJMRXIVIWX
ERHMRXMQMHEXMSRXLVIEXW8LIJSPPS[MRKEVII\EQTPIWSJWYGLVIPEXMSRWLMTW


E  LEZMRK E QEXIVMEP JMRERGMEP MRXIVIWX MR E NSMRX ZIRXYVI [MXL XLI EWWYVERGI GPMIRX SV E
GSRXVSPPMRK S[RIV HMVIGXSV SJJMGIV SV SXLIV MRHMZMHYEP [LS TIVJSVQW WIRMSV QEREKIVMEP
JYRGXMSRWJSVXLEXGPMIRX

F EVVERKIQIRXWXSGSQFMRISRISVQSVIWIVZMGIWSVTVSHYGXWSJXLIJMVQ[MXLSRISVQSVI
WIVZMGIWSVTVSHYGXWSJXLIEWWYVERGIGPMIRXERHXSQEVOIXXLITEGOEKI[MXLVIJIVIRGIXSFSXL
TEVXMIWERH
G  HMWXVMFYXMSR SV QEVOIXMRK EVVERKIQIRXW YRHIV [LMGL XLI JMVQ EGXW EW E HMWXVMFYXSV SV
marketer of the assurance client’s products or services, or the assurance client acts as the
HMWXVMFYXSVSVQEVOIXIVSJXLITVSHYGXWSVWIVZMGIWSJXLIJMVQ
-RXLIGEWISJEREYHMXGPMIRXYRPIWWXLIJMRERGMEPMRXIVIWXMWMQQEXIVMEPERHXLIVIPEXMSRWLMT
MWGPIEVP]MRWMKRMJMGERXXSXLIJMVQXLIRIX[SVOJMVQERHXLIEYHMXGPMIRXRSWEJIKYEVHWGSYPH
VIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP-RXLIGEWISJEREWWYVERGIGPMIRXXLEXMWRSXEREYHMX
GPMIRXYRPIWWXLIJMRERGMEPMRXIVIWXMWMQQEXIVMEPERHXLIVIPEXMSRWLMTMWGPIEVP]MRWMKRMJMGERX
XSXLIJMVQERHXLIEWWYVERGIGPMIRXRSWEJIKYEVHWGSYPHVIHYGIXLIXLVIEXXSEREGGITXEFPI
PIZIP 'SRWIUYIRXP]MRFSXLXLIWIGMVGYQWXERGIWXLISRP]TSWWMFPIGSYVWIWSJEGXMSREVI
XS
E XIVQMREXIXLIFYWMRIWWVIPEXMSRWLMT
F VIHYGIXLIQEKRMXYHISJXLIVIPEXMSRWLMTWSXLEXXLIJMRERGMEPMRXIVIWXMWMQQEXIVMEP
ERHXLIVIPEXMSRWLMTMWGPIEVP]MRWMKRMJMGERXSV

G VIJYWIXSTIVJSVQXLIEWWYVERGIIRKEKIQIRX
9RPIWWER]WYGLJMRERGMEPMRXIVIWXMWMQQEXIVMEPERHXLIVIPEXMSRWLMTMWGPIEVP]MRWMKRMJMGERX
XSXLIQIQFIVSJXLIEWWYVERGI XIEQXLI SRP] ETTVSTVMEXIWEJIKYEVH[SYPH FI XS VIQSZI
XLIMRHMZMHYEPJVSQXLIEWWYVERGIXIEQ
-RXLIGEWISJEREYHMXGPMIRXFYWMRIWWVIPEXMSRWLMTWMRZSPZMRKERMRXIVIWXLIPHF]XLI
JMVQ E RIX[SVO JMVQ SV E QIQFIV SJ XLI EWWYVERGI XIEQ SV XLIMV MQQIHMEXI JEQMP] MR E
GPSWIP] LIPHIRXMX] [LIR XLIEYHMXGPMIRXSVEHMVIGXSV SVSJJMGIV SJXLIEYHMX GPMIRXSVER]
KVSYT XLIVISJ EPWS LEW ER MRXIVIWX MR XLEX IRXMX] HS RSX GVIEXI XLVIEXW XS MRHITIRHIRGI
TVSZMHIH

E XLIVIPEXMSRWLMTMWGPIEVP]MRWMKRMJMGERXXSXLIJMVQXLIRIX[SVOJMVQERHXLIEYHMXGPMIRX
F XLIMRXIVIWXLIPHMWMQQEXIVMEPXSXLIMRZIWXSVSVKVSYTSJMRZIWXSVWERH

G  XLI MRXIVIWX HSIW RSX KMZI XLI MRZIWXSV SV KVSYT SJ MRZIWXSVW XLI EFMPMX] XS GSRXVSP XLI
GPSWIP]LIPHIRXMX]
8LITYVGLEWISJKSSHWERHWIVZMGIWJVSQEREWWYVERGIGPMIRXF]XLIJMVQSVJVSQER
EYHMX GPMIRX F] E RIX[SVO JMVQ  SV E QIQFIV SJ XLI EWWYVERGI XIEQ [SYPH RSX KIRIVEPP]
GVIEXIEXLVIEXXSMRHITIRHIRGITVSZMHMRKXLIXVERWEGXMSRMWMRXLIRSVQEPGSYVWISJFYWMRIWW
and on an arm’s length basis. However, such transactions may be of a nature or magnitude
WSEWXSGVIEXIEWIPJMRXIVIWXXLVIEX-JXLIXLVIEXGVIEXIHMWSXLIVXLERGPIEVP]MRWMKRMJMGERX
WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS VIHYGI XLI XLVIEX XS ER
EGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI

E IPMQMREXMRKSVVIHYGMRKXLIQEKRMXYHISJXLIXVERWEGXMSR


F VIQSZMRKXLIMRHMZMHYEPJVSQXLIEWWYVERGIXIEQSV
G HMWGYWWMRKXLIMWWYI[MXLXLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXII


*%1-0=%2(4)6732%06)0%8-327,-47
 *EQMP] ERH TIVWSREP VIPEXMSRWLMTW FIX[IIR E QIQFIV SJ XLI EWWYVERGI XIEQ ERH E
HMVIGXSVER SJJMGIV SV GIVXEMR IQTPS]IIW HITIRHMRK SR XLIMV VSPI SJ XLI EWWYVERGI GPMIRX
QE]GVIEXIWIPJMRXIVIWXJEQMPMEVMX]SVMRXMQMHEXMSRXLVIEXW-XMWMQTVEGXMGEFPIXSEXXIQTXXS
HIWGVMFI MR HIXEMP XLI WMKRMJMGERGI SJ XLI XLVIEXW XLEX WYGL VIPEXMSRWLMTW QE] GVIEXI 8LI
significance will depend upon a number of factors including the individual’s responsibilities
SR XLI EWWYVERGI IRKEKIQIRX XLI GPSWIRIWW SJ XLI VIPEXMSRWLMT ERH XLI VSPI SJ XLI JEQMP]
QIQFIV SV SXLIV MRHMZMHYEP [MXLMR XLI EWWYVERGI GPMIRX 'SRWIUYIRXP] XLIVI MW E [MHI
WTIGXVYQ SJ GMVGYQWXERGIW XLEX [MPP RIIH XS FI IZEPYEXIH ERH WEJIKYEVHW XS FI ETTPMIH XS
VIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP

;LIRERMQQIHMEXIJEQMP]QIQFIVSJEQIQFIVSJXLIEWWYVERGIXIEQMWEHMVIGXSV
ERSJJMGIVSVER IQTPS]IISJXLIEWWYVERGIGPMIRXMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERX
MRJPYIRGI SZIV XLI WYFNIGX QEXXIV SJ XLI EWWYVERGI IRKEKIQIRX SV [EW MR WYGL E TSWMXMSR
HYVMRK ER] TIVMSH GSZIVIH F] XLI IRKEKIQIRX XLI XLVIEXW XS MRHITIRHIRGI GER SRP] FI
VIHYGIH XS ER EGGITXEFPI PIZIP F] VIQSZMRK XLI MRHMZMHYEP JVSQ XLI EWWYVERGI XIEQ 8LI
GPSWIRIWW SJ XLI VIPEXMSRWLMT MW WYGL XLEX RS SXLIV WEJIKYEVH GSYPH VIHYGI XLI XLVIEX XS
MRHITIRHIRGI XS EREGGITXEFPI PIZIP -J ETTPMGEXMSR SJ XLMW WEJIKYEVH MW RSX YWIH XLI SRP]
GSYVWISJEGXMSRMWXS[MXLHVE[JVSQXLIEWWYVERGIIRKEKIQIRX *SVI\EQTPIMRXLIGEWI
SJEREYHMXSJJMRERGMEPWXEXIQIRXWMJXLIWTSYWISJEQIQFIVSJXLIEWWYVERGIXIEQMW
ERIQTPS]IIMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERXMRJPYIRGISR XLITVITEVEXMSR
of the audit client’s accounting records or financial statements, the threat to
MRHITIRHIRGIGSYPHSRP]FIVIHYGIHXSEREGGITXEFPIPIZIPF]VIQSZMRKXLIMRHMZMHYEP
JVSQXLIEWWYVERGIXIEQ
 ;LIR E GPSWI JEQMP] QIQFIV SJ E QIQFIV SJ XLI EWWYVERGI XIEQ MW E HMVIGXSV ER
SJJMGIVSVERIQTPS]IISJXLIEWWYVERGIGPMIRXMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERX
MRJPYIRGISZIVXLIWYFNIGXQEXXIVSJXLIEWWYVERGIIRKEKIQIRXXLVIEXWXSMRHITIRHIRGIQE]
FIGVIEXIH8LIWMKRMJMGERGISJXLI XLVIEXW[MPPHITIRHSRJEGXSVWWYGLEW
E XLITSWMXMSRXLIGPSWIJEQMP]QIQFIVLSPHW[MXLXLIGPMIRXERH
F XLIVSPISJXLITVSJIWWMSREPSRXLIEWWYVERGIXIEQ

8LI WMKRMJMGERGI SJ XLI XLVIEX WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER GPIEVP]
MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIXLVIEX
XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI

E VIQSZMRKXLIMRHMZMHYEPJVSQXLIEWWYVERGIXIEQ
F  [LIVI TSWWMFPI WXVYGXYVMRK XLI VIWTSRWMFMPMXMIW SJ XLI EWWYVERGI XIEQ WS XLEX XLI
TVSJIWWMSREPHSIWRSXHIEP[MXLQEXXIVWXLEXEVI[MXLMRXLIVIWTSRWMFMPMX]SJXLIGPSWIJEQMP]
QIQFIVSV
G  TSPMGMIW ERH TVSGIHYVIW XS IQTS[IV WXEJJ XS GSQQYRMGEXI XS WIRMSV PIZIPW [MXLMR XLI
JMVQER]MWWYISJMRHITIRHIRGIERHSFNIGXMZMX]XLEXGSRGIVRWXLIQ

 -R EHHMXMSR WIPJMRXIVIWX JEQMPMEVMX] SV MRXMQMHEXMSR XLVIEXW QE] FI GVIEXIH [LIR E
TIVWSR [LS MW SXLIV XLER ER MQQIHMEXI SV GPSWI JEQMP] QIQFIV SJ E QIQFIV SJ XLI
EWWYVERGI XIEQ LEW E GPSWI VIPEXMSRWLMT [MXL XLI QIQFIV SJ XLI EWWYVERGI XIEQ ERH MW E
HMVIGXSVERSJJMGIVSVERIQTPS]IISJXLIEWWYVERGIGPMIRXMRETSWMXMSRXSI\IVXHMVIGXERH


WMKRMJMGERX MRJPYIRGI SZIV XLI WYFNIGX QEXXIV SJ XLI EWWYVERGI IRKEKIQIRX 8LIVIJSVI
QIQFIVW SJ XLI EWWYVERGI XIEQ EVI VIWTSRWMFPI JSV MHIRXMJ]MRK ER] WYGL TIVWSRW ERH JSV
GSRWYPXMRK MR EGGSVHERGI [MXL JMVQ TVSGIHYVIW 8LI IZEPYEXMSR SJ XLI WMKRMJMGERGI SJ ER]
XLVIEX GVIEXIH ERH XLI WEJIKYEVHW ETTVSTVMEXI XS IPMQMREXI XLI XLVIEX SV VIHYGI MX XS ER
EGGITXEFPI PIZIP [MPP MRGPYHI GSRWMHIVMRK QEXXIVW WYGL EW XLI GPSWIRIWW SJ XLI VIPEXMSRWLMT
ERHXLIVSPISJXLIMRHMZMHYEP[MXLMRXLIEWWYVERGIGPMIRX
 'SRWMHIVEXMSR WLSYPH FI KMZIR XS [LIXLIV WIPJMRXIVIWX JEQMPMEVMX] SV MRXMQMHEXMSR
XLVIEXWQE]FIGVIEXIHF]ETIVWSREPSVJEQMP]VIPEXMSRWLMTFIX[IIRETEVXRIVSVIQTPS]II
SJ XLI JMVQ [LS MW RSX E QIQFIV SJ XLI EWWYVERGI XIEQ ERH E HMVIGXSV ER SJJMGIV SV ER
IQTPS]IISJXLIEWWYVERGIGPMIRXMRETSWMXMSRXSI\IVXHMVIGXERHWMKRMJMGERXMRJPYIRGISZIV
XLI WYFNIGX QEXXIV SJXLI EWWYVERGI IRKEKIQIRX 8LIVIJSVI TEVXRIVW ERH IQTPS]IIW SJ XLI
JMVQEVIVIWTSRWMFPIJSVMHIRXMJ]MRKER]WYGLVIPEXMSRWLMTWERHJSVGSRWYPXMRKMREGGSVHERGI
[MXL JMVQ TVSGIHYVIW 8LI IZEPYEXMSR SJ XLI WMKRMJMGERGI SJ ER] XLVIEX GVIEXIH ERH XLI
WEJIKYEVHWETTVSTVMEXIXSIPMQMREXIXLIXLVIEXSVVIHYGIMXXSEREGGITXEFPIPIZIP[MPPMRGPYHI
GSRWMHIVMRK QEXXIVW WYGL EW XLI GPSWIRIWW SJ XLI VIPEXMSRWLMT XLI MRXIVEGXMSR SJ XLI JMVQ
TVSJIWWMSREP[MXLXLIEWWYVERGIXIEQXLITSWMXMSRLIPH[MXLMRXLIJMVQERHXLIVSPISJXLI
MRHMZMHYEP[MXLMRXLIEWWYVERGIGPMIRX
%RMREHZIVXIRXZMSPEXMSRSJXLMWWIGXMSREWMXVIPEXIWXSJEQMP]ERHTIVWSREPVIPEXMSRWLMTW
[SYPHRSXMQTEMVXLIMRHITIRHIRGISJEJMVQSVEQIQFIVSJXLIEWWYVERGIXIEQ[LIR

E XLIJMVQLEWIWXEFPMWLIHTSPMGMIWERHTVSGIHYVIWXLEXVIUYMVIEPPTVSJIWWMSREPWXSVITSVX
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F IMXLIVXLIVIWTSRWMFMPMXMIWSJXLIEWWYVERGIXIEQEVIVIWXVYGXYVIHWSXLEXXLITVSJIWWMSREP
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VIQSZIWXLITVSJIWWMSREPJVSQXLIEWWYVERGIIRKEKIQIRXERH

G EHHMXMSREPGEVIMWKMZIRXSVIZMI[MRKXLI[SVOSJXLITVSJIWWMSREP
 ;LIR ER MREHZIVXIRX ZMSPEXMSR SJ XLMW WIGXMSR VIPEXMRK XS JEQMP] ERH TIVWSREP
VIPEXMSRWLMTW LEW SGGYVVIH XLI JMVQ WLSYPH GSRWMHIV [LIXLIV ER] WEJIKYEVHW WLSYPH FI
ETTPMIH7YGLWEJIKYEVHWQMKLXMRGPYHI

E  MRZSPZMRK EREHHMXMSREPTVSJIWWMSREPEGGSYRXERX [LS HMH RSXXEOI TEVXMRXLIEWWYVERGI

IRKEKIQIRXXSVIZMI[XLI[SVOHSRIF]XLIQIQFIVSJXLIEWWYVERGIXIEQSV
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IRKEKIQIRX

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8.88 A firm or a member of the assurance team’s independence may be threatIRIH MJ E
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VIQEMR FIX[IIR XLI MRHMZMHYEP ERH LMW SV LIV JSVQIV JMVQ 7MQMPEVP] E QIQFIV SJ XLI
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EWWYVERGI IRKEKIQIRX ORS[MRK SV LEZMRK VIEWSR XS FIPMIZI XLEX LI SV WLI MWXS SV QE]
NSMRXLIEWWYVERGIGPMIRXWSQIXMQIMRXLIJYXYVI

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GVIEXIH[MPPHITIRHYTSRXLIJSPPS[MRKJEGXSVW
E XLITSWMXMSRXLIMRHMZMHYEPLEWXEOIREXXLIEWWYVERGIGPMIRX
F XLIEQSYRXSJER]MRZSPZIQIRXXLIMRHMZMHYEP[MPPLEZI[MXLXLIEWWYVERGIXIEQ

G  XLI PIRKXL SJXMQIXLEXLEWTEWWIH WMRGI XLIMRHMZMHYEP[EW E QIQFIVSJ XLIEWWYVERGI

XIEQSVJMVQERH
H XLIJSVQIVTSWMXMSRSJXLIMRHMZMHYEP[MXLMRXLIEWWYVERGIXIEQSVJMVQ
8LI WMKRMJMGERGI SJ XLI XLVIEX WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER GPIEVP]
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XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
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EWWYVERGIIRKEKIQIRX
F EWWMKRMRKEREWWYVERGIXIEQXSXLIWYFWIUYIRXEWWYVERGIIRKEKIQIRXXLEXMWSJWYJJMGMIRX
I\TIVMIRGIMRVIPEXMSRXSXLIMRHMZMHYEP[LSLEWNSMRIHXLIEWWYVERGIGPMIRX
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XIEQXSVIZMI[XLI[SVOHSRISVSXLIV[MWIEHZMWIEWRIGIWWEV]SV
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-R EPP GEWIW EPP SJ XLI JSPPS[MRK WEJIKYEVHW EVI RIGIWWEV] XS VIHYGI XLI XLVIEX XS ER
EGGITXEFPIPIZIP

E XLIMRHMZMHYEPGSRGIVRIHMWRSXIRXMXPIHXSER]FIRIJMXWSVTE]QIRXWJVSQXLIJMVQYRPIWW
XLIWI EVI QEHI MR EGGSVHERGI [MXL JM\IH TVIHIXIVQMRIH EVVERKIQIRXW -R EHHMXMSR ER]
EQSYRX S[IH XS XLI MRHMZidual should not be of such significance to threaten the firm’s
MRHITIRHIRGIERH
(b) the individual does not continue to participate or appear to participate in the firm’s
FYWMRIWWSVTVSJIWWMSREPEGXMZMXMIW
 %WIPJMRXIVIWX XLVIEXMWGVIEXIH[LIR E QIQFIVSJ XLIEWWYVERGIXIEQTEVXMGMTEXIW MR
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SVQE]NSMRXLIEWWYVERGIGPMIRXWSQIXMQIMRXLIJYXYVI8LMWXLVIEXGERFIVIHYGIHXSER
EGGITXEFPIPIZIPF]XLIETTPMGEXMSRSJEPPSJXLIJSPPS[MRKWEJIKYEVHW
E TSPMGMIWERHTVSGIHYVIWXSVIUYMVIXLIMRHMZMHYEPXSRSXMJ]XLIJMVQ[LIRIRXIVMRKWIVMSYW
IQTPS]QIRXRIKSXMEXMSRW[MXLXLIEWWYVERGIGPMIRXERH
F VIQSZEPSJXLIMRHMZMHYEPJVSQXLIEWWYVERGIIRKEKIQIRX
-R EHHMXMSR GSRWMHIVEXMSR WLSYPH FI KMZIR XS TIVJSVQMRK ER MRHITIRHIRX VIZMI[ SJ ER]
WMKRMJMGERXNYHKQIRXWQEHIF]XLEXMRHMZMHYEP[LMPISRXLIIRKEKIQIRX


 8S LEZI E JSVQIV SJJMGIV HMVIGXSV SV IQTPS]II SJ XLI EWWYVERGI GPMIRX WIVZI EW E
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8LMW[SYPHFITEVXMGYPEVP]XVYI[LIREQIQFIVSJXLIEWWYVERGIXIEQLEWXSVITSVXSRJSV
I\EQTPIWYFNIGXQEXXIVLISVWLILEHTVITEVIHSVIPIQIRXWSJXLIJMRERGMEPWXEXIQIRXWLISV
WLILEHZEPYIH[LMPI[MXLXLIEWWYVERGIGPMIRX
-JHYVMRKXLITIVMSHGSZIVIHF]XLIEWWYVERGIVITSVXEQIQFIVSJXLIEWWYVERGIXIEQ
LEH WIVZIH EWER SJJMGIVSV HMVIGXSV SJXLIEWWYVERGI GPMIRX SVLEH FIIRER IQTPS]IIMRE
TSWMXMSR XS I\IVX HMVIGX ERH WMKRMJMGERX MRJPYIRGI SZIV XLI WYFNIGX QEXXIV SJ XLI EWWYVERGI
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XS ER EGGITXEFPI PIZIP 'SRWIUYIRXP] WYGL MRHMZMHYEPW WLSYPH RSX FI EWWMKRIH XS XLI
EWWYVERGIXIEQ

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LEH WIVZIH EWER SJJMGIVSV HMVIGXSV SJXLIEWWYVERGI GPMIRX SVLEH FIIRER IQTPS]IIMRE
TSWMXMSR XS I\IVX HMVIGX ERH WMKRMJMGERX MRJPYIRGI SZIV XLI WYFNIGX QEXXIV SJ XLI EWWYVERGI
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EW TEVX SJ XLI GYVVIRX EWWYVERGI IRKEKIQIRX 8LI WMKRMJMGERGI SJ XLI XLVIEXW [MPP HITIRH
YTSRJEGXSVWWYGLEW

E XLITSWMXMSRXLIMRHMZMHYEPLIPH[MXLXLIEWWYVERGIGPMIRX
F XLIPIRKXLSJ XMQIXLEXLEWTEWWIHWMRGIXLIMRHMZMHYEPPIJXXLIEWWYVERGIGPMIRXERH
G XLIVSPIXLIMRHMZMHYEPTPE]WSRXLIEWWYVERGIXIEQ

8LI WMKRMJMGERGI SJ XLI XLVIEX WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER GPIEVP]
MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIXLVIEX
XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
E  MRZSPZMRK ER EHHMXMSREP TVSJIWWMSREP EGGSYRXERX XS VIZMI[ XLI [SVO HSRI F] XLI
MRHMZMHYEPEWTEVXSJXLIEWWYVERGIXIEQSVSXLIV[MWIEHZMWIEWRIGIWWEV]SV

F HMWGYWWMRKXLIMWWYI[MXLXLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXII

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EREWWYVERGIGPMIRXXLIWIPJVIZMI[ERHWIPJMRXIVIWXXLVIEXWGVIEXIH[SYPHFIWSWMKRMJMGERX
XLEX RS WEJIKYEVH GSYPH VIHYGI XLI XLVIEXW XS ER EGGITXEFPI PIZIP -R XLI GEWI SJ ER EYHMX
IRKEKIQIRXMJETEVXRIVSVIQTPS]IISJERIX[SVOJMVQ[IVIXSWIVZIEWERSJJMGIVSVEWE
HMVIGXSVSRXLIFSEVHSJEREYHMXGPMIRXXLIXLVIEXWGVIEXIH[SYPHFIWSWMKRMJMGERXXLEXRS
WEJIKYEVH GSYPH VIHYGI XLI XLVIEXW XS ER EGGITXEFPI PIZIP 'SRWIUYIRXP] MJ WYGL ER
MRHMZMHYEP[IVIXSEGGITXWYGLETSWMXMSRXLISRP]GSYVWISJEGXMSRMWXSVIJYWIXSTIVJSVQSV
XS[MXLHVE[JVSQXLIEWWYVERGIIRKEKIQIRX
 8LI TSWMXMSR SJ XLI 'SQTER] 7IGVIXEV] LEW HMJJIVIRX MQTPMGEXMSRW MR HMJJIVIRX
NYVMWHMGXMSRW 8LI HYXMIW QE] VERKI JVSQ EHQMRMWXVEXMZI HYXMIW WYGL EW TIVWSRRIP
QEREKIQIRXERHXLIQEMRXIRERGISJGSQTER]VIGSVHWERHVIKMWXIVWXSHYXMIWEWHMZIVWIEW
IRWYVMRK XLEX XLI GSQTER] GSQTPMIW [MXL VIKYPEXMSRW SV TVSZMHMRK EHZMGI SR GSVTSVEXI


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MWWTIGMJMGEPP]TIVQMXXIHYRHIVPSGEPPE[TVSJIWWMSREPVYPIWSVTVEGXMGIXLIHYXMIWERH
JYRGXMSRWYRHIVXEOIRWLSYPHFIPMQMXIHXSXLSWISJEVSYXMRIERHJSVQEPEHQMRMWXVEXMZI
REXYVIWYGLEWXLITVITEVEXMSRSJQMRYXIWERHQEMRXIRERGISJWXEXYXSV]VIXYVRW
6SYXMRIEHQMRMWXVEXMZIWIVZMGIWXSWYTTSVXEGSQTER]WIGVIXEVMEPJYRGXMSRSVEHZMWSV]
[SVOMRVIPEXMSRXSGSQTER]WIGVIXEVMEPEHQMRMWXVEXMSRQEXXIVWMWKIRIVEPP]RSXTIVGIMZIHXS
MQTEMVMRHITIRHIRGITVSZMHIHGPMIRXQEREKIQIRXQEOIWEPPVIPIZERXHIGMWMSRW

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WYGLEW
E XLIPIRKXLSJXMQIXLEXXLIMRHMZMHYEPLEWFIIREQIQFIVSJXLIEWWYVERGIXIEQ

F XLIVSPISJXLIMRHMZMHYEPSRXLIEWWYVERGIXIEQ
G XLIWXVYGXYVISJXLIJMVQERH
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EGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI

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F MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERX[LS[EWRSXEQIQFIVSJXLIEWWYVERGI
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F  E TEVXRIV VSXEXMRK EJXIV E TVIHIJMRIH TIVMSH WLSYPH RSX TEVXMGMTEXI MR XLI EWWYVERGI
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(a) situations when the lead engagement partner’s continuity is especially important to the
audit client, for example, when there will be major changes to the audit client’s structure
XLEX [SYPHSXLIV[MWIGSMRGMHI[MXLXLIVSXEXMSRSJXLIPIEHIRKEKIQIRXTEVXRIVERH

F WMXYEXMSRW[LIRHYIXSXLIWM^ISJXLIJMVQVSXEXMSRMWRSXTSWWMFPISVHSIWRSXGSRWXMXYXI
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 ;LIR E JMVQ LEW SRP] E JI[ EYHMX TEVXRIVW [MXL XLI RIGIWWEV] ORS[PIHKI ERH
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WIVZMGIW XLEX EVI GSRWMWXIRX [MXL XLIMV WOMPPW ERH I\TIVXMWI %WWYVERGI GPMIRXW ZEPYI XLI
FIRIJMXW XLEX HIVMZI JVSQ LEZMRK XLIWI JMVQW [LS LEZI E KSSH YRHIVWXERHMRK SJ XLI
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regarding the assurance client’s business and operations that is helpful in relation to the
assurance engagement. The greater the knowledge of the assurance client’s business, the
FIXXIV XLI EWWYVERGI XIEQ [ill understand the assurance client’s procedures and controls,
ERH XLI FYWMRIWW ERH JMRERGMEP VMWOW XLEXMXJEGIW 8LI TVSZMWMSR SJ RSREWWYVERGI WIVZMGIW
QE] LS[IZIV GVIEXI XLVIEXW XS XLI MRHITIRHIRGI SJ XLI JMVQ E RIX[SVO JMVQ SV XLI
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VIHYGI XLI XLVIEX GVIEXIH F] ETTPMGEXMSR SJ WEJIKYEVHW -R SXLIV GEWIW RS WEJIKYEVHW EVI
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8LIJSPPS[MRKEGXMZMXMIW[SYPHKIRIVEPP]GVIEXIWIPJMRXIVIWXSVWIPJVIZMI[XLVIEXWXLEX
EVI WS WMKRMJMGERX XLEX SRP] EZSMHERGI SJ XLI EGXMZMX] SV VIJYWEP XS TIVJSVQ XLI EWWYVERGI
IRKEKIQIRX[SYPHVIHYGIXLIXLVIEXWXSEREGGITXEFPIPIZIP


E EYXLSVMWMRKI\IGYXMRKSVGSRWYQQEXMRKEXVERWEGXMSRSVSXLIV[MWII\IVGMWMRKEYXLSVMX]
SRFILEPJSJXLIEWWYVERGIGPMIRXSVLEZMRKXLIEYXLSVMX]XSHSWS
F HIXIVQMRMRK[LMGLVIGSQQIRHEXMSRSJXLIJMVQWLSYPHFIMQTPIQIRXIHERH
G VITSVXMRKMREQEREKIQIRXVSPIXSXLSWIGLEVKIH[MXLKSZIVRERGI
8LII\EQTPIWWIXSYXMRTEVEKVETLWXLVSYKLEVIEHHVIWWIHMRXLIGSRXI\X
SJ XLI TVSZMWMSR SJ RSREWWYVERGI WIVZMGIW XS ER EWWYVERGI GPMIRX 8LI TSXIRXMEP XLVIEXW XS
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SXLIV EWWYVERGI WIVZMGIW LS[IZIV QE] FI PMQMXIH MR REXYVI 8LVIEXW XS MRHITIRHIRGI
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QEXXIVSJERSREYHMXEWWYVERGIIRKEKIQIRX-RWYGLGEWIWGSRWMHIVEXMSRWLSYPHFIKMZIRXS
the significance of the firm’s involvement with the subject matter of the nonEYHMXEWWYVERGI
IRKEKIQIRX [LIXLIV ER] WIPJVIZMI[ XLVIEXW EVI GVIEXIH ERH [LIXLIV ER] XLVIEXW XS
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[LIXLIVXLIRSREWWYVERGIIRKEKIQIRXWLSYPHFIHIGPMRIH;LIRXLIRSREWWYVERGIWIVZMGI
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8LIJSPPS[MRKEGXMZMXMIWQE]EPWSGVIEXIWIPJVIZMI[SVWIPJMRXIVIWXXLVIEXW
(a) having custody of an assurance client’s assets;

F  WYTIVZMWMRK EWWYVERGI GPMIRX IQTPS]IIW MR XLI TIVJSVQERGI SJ XLIMV RSVQEP VIGYVVMRK
EGXMZMXMIWERH
G TVITEVMRKWSYVGIHSGYQIRXWSVSVMKMREXMRKHEXEMRIPIGXVSRMGSVSXLIVJSVQIZMHIRGMRK
XLI SGGYVVIRGI SJ E XVERWEGXMSR JSV I\EQTPI TYVGLEWI SVHIVW TE]VSPP XMQI VIGSVHW ERH
GYWXSQIVSVHIVW 

8LI WMKRMJMGERGI SJ ER] XLVIEX GVIEXIH WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER
GPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSIPMQMREXI
XLIXLVIEXSVVIHYGIMXXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
E QEOMRKEVVERKIQIRXWWSXLEXTIVWSRRIPTVSZMHMRKWYGLWIVZMGIWHSRSXTEVXMGMTEXIMRXLI
EWWYVERGIIRKEKIQIRX
F MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERXXSEHZMWISRXLITSXIRXMEPMQTEGXSJXLI
EGXMZMXMIWSRXLIMRHITIRHIRGISJXLIJMVQERHXLIEWWYVERGIXIEQ

2I[HIZIPSTQIRXWMRFYWMRIWWXLIIZSPYXMSRSJJMRERGMEPQEVOIXWVETMHGLERKIWMR
MRJSVQEXMSR XIGLRSPSK] ERH XLI GSRWIUYIRGIW JSV QEREKIQIRX ERH GSRXVSP QEOI MX
MQTSWWMFPI XS HVE[ YT ER EPPMRGPYWMZI PMWX SJ EPP WMXYEXMSRW [LIR TVSZMHMRK RSREWWYVERGI
WIVZMGIW XS ER EWWYVERGI GPMIRX QMKLX GVIEXI XLVIEXW XS MRHITIRHIRGI ERH SJ XLI HMJJIVIRX
WEJIKYEVHW XLEX QMKLX IPMQMREXI XLIWI XLVIEXW SV VIHYGI XLIQ XS ER EGGITXEFPI PIZIP -R
KIRIVEPLS[IZIVEJMVQQE]TVSZMHIWIVZMGIWFI]SRHXLIEWWYVERGIIRKEKIQIRXTVSZMHIH
ER]XLVIEXWXSMRHITIRHIRGILEZIFIIRVIHYGIHXSEREGGITXEFPIPIZIP
 8LI JSPPS[MRK WEJIKYEVHW QE] FI TEVXMGYPEVP] VIPIZERX MR VIHYGMRK XS ER EGGITXEFPI
PIZIPXLVIEXWGVIEXIHF]XLITVSZMWMSRSJRSREWWYVERGIWIVZMGIWXSEWWYVERGIGPMIRXW


E  TSPMGMIW ERH TVSGIHYVIW XS TVSLMFMX TVSJIWWMSREP WXEJJ JVSQ QEOMRK QEREKIQIRX
HIGMWMSRWJSVXLIEWWYVERGIGPMIRXSVEWWYQMRKVIWTSRWMFMPMX]JSVWYGLHIGMWMSRW

F HMWGYWWMRKMRHITIRHIRGIMWWYIWVIPEXIHXSXLITVSZMWMSRSJRSREWWYVERGIWIVZMGIW[MXL
XLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXII
G TSPMGMIW[MXLMRXLIEWWYVERGIGPMIRXVIKEVHMRK XLISZIVWMKLXVIWTSRWMFMPMX]JSVTVSZMWMSR
SJRSREWWYVERGI WIVZMGIWF]XLIJMVQ
H MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERXXSEHZMWISRXLITSXIRXMEPMQTEGXSJXLI
RSREWWYVERGIIRKEKIQIRXSRXLIMRHITIRHIRGISJXLIQIQFIVSJXLIEWWYVERGIXIEQERH
XLIJMVQ
I MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERXSYXWMHISJXLIJMVQXSTVSZMHIEWWYVERGI
SREHMWGVIXIEWTIGXSJXLIEWWYVERGIIRKEKIQIRX
(f) obtaining the assurance client’s acknowledgement of responsibility for the results of the
[SVOTIVJSVQIHF]XLIJMVQ
K HMWGPSWMRKXSXLSWIGLEVKIH[MXLKSZIVRERGIWYGLEWXLIEYHMXGSQQMXXIIXLIREXYVIERH
I\XIRXSJJIIWGLEVKIHSV
L  QEOMRK EVVERKIQIRXW WS XLEX TIVWSRRIP TVSZMHMRK RSREWWYVERGI WIVZMGIW HS RSX
TEVXMGMTEXIMRXLIEWWYVERGIIRKEKIQIRX

 &IJSVI XLI JMVQ EGGITXW ER IRKEKIQIRX XS TVSZMHI E RSREWWYVERGI WIVZMGI XS ER
EWWYVERGIGPMIRXGSRWMHIVEXMSRWLSYPH FI KMZIRXS[LIXLIVXLITVSZMWMSRSJWYGLE WIVZMGI
[SYPH GVIEXI E XLVIEX XS MRHITIRHIRGI -R WMXYEXMSRW [LIR E XLVIEX GVIEXIH MW SXLIV XLER
GPIEVP] MRWMKRMJMGERX XLI RSREWWYVERGI IRKEKIQIRX WLSYPH FI HIGPMRIHYRPIWW ETTVSTVMEXI
WEJIKYEVHWGERFIETTPMIHXSIPMQMREXIXLIXLVIEXSVVIHYGIMXXSEREGGITXEFPIPIZIP
8LITVSZMWMSRSJGIVXEMRRSREWWYVERGIWIVZMGIWXSEYHMXGPMIRXWQE]GVIEXIXLVIEXWXS
MRHITIRHIRGIWSWMKRMJMGERXXLEXRSWEJIKYEVHGSYPHIPMQMREXIXLIXLVIEXSVVIHYGIMXXSER
EGGITXEFPI PIZIP ,S[IZIV XLI TVSZMWMSR SJ WYGL WIVZMGIW XS E VIPEXIH IRXMX] HMZMWMSR SV
HMWGVIXIJMRERGMEPWXEXIQIRXMXIQSJWYGLGPMIRXWQE]FITIVQMWWMFPI[LIRER]XLVIEXWXSXLI
firm’s independence have been reduced to an acceptable level by arrangements for that
VIPEXIHIRXMX]HMZMWMSRSVHMWGVIXIJMRERGMEPWXEXIQIRXMXIQXSFIEYHMXIHF]ERSXLIVJMVQSV
[LIRERSXLIVJMVQVITIVJSVQWXLIRSREWWYVERGIWIVZMGIXSXLII\XIRXRIGIWWEV]XSIREFPIMX
XSXEOIVIWTSRWMFMPMX]JSVXLEXWIVZMGI

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%WWMWXMRKEREYHMXGPMIRXMRQEXXIVWWYGLEWTVITEVMRKEGGSYRXMRKVIGSVHWSVJMRERGMEP
WXEXIQIRXW QE] GVIEXIE WIPJVIZMI[ XLVIEX [LIR XLIJMRERGMEP WXEXIQIRXW EVI WYFWIUYIRXP]
EYHMXIHF]XLIJMVQ
-XMWXLIVIWTSRWMFMPMX]SJGPMIRXQEREKIQIRXXSIRWYVIXLEXEGGSYRXMRKVIGSVHWEVIOITX
ERH JMRERGMEP WXEXIQIRXW EVI TVITEVIH EPXLSYKL XLI] QE] VIUYIWX XLI JMVQ XS TVSZMHI
EWWMWXERGI -J JMVQ SV RIX[SVO JMVQ TIVWSRRIP TVSZMHMRK WYGL EWWMWXERGI QEOI
QEREKIQIRX HIGMWMSRW XLI WIPJVIZMI[ XLVIEX GVIEXIH GSYPH RSX FI VIHYGIH XS ER
EGGITXEFPI PIZIP F] ER] WEJIKYEVHW 'SRWIUYIRXP] TIVWSRRIP WLSYPH RSX QEOI WYGL
HIGMWMSRW)\EQTPIWSJWYGL QEREKIVMEPHIGMWMSRWMRGPYHIXLIJSPPS[MRK


E  HIXIVQMRMRK SV GLERKMRK NSYVREP IRXVMIW SV XLI GPEWWMJMGEXMSRW JSV EGGSYRXW SV
XVERWEGXMSRW SVSXLIVEGGSYRXMRK VIGSVHW[MXLSYX SFXEMRMRK XLIETTVSZEPSJ XLI EYHMX
GPMIRX
F EYXLSVMWMRKSVETTVSZMRKXVERWEGXMSRWERH
G  TVITEVMRKWSYVGIHSGYQIRXWSVSVMKMREXMRK HEXE MRGPYHMRKHIGMWMSRW SRZEPYEXMSR
EWWYQTXMSRW SVQEOMRKGLERKIWXSWYGLHSGYQIRXWSVHEXE
8LIEYHMXTVSGIWWMRZSPZIWI\XIRWMZIHMEPSKYIFIX[IIRXLIJMVQERHQEREKIQIRXSJ
XLI EYHMX GPMIRX (YVMRK XLMW TVSGIWW QEREKIQIRX VIUYIWXW ERH VIGIMZIW WMKRMJMGERX MRTYX
VIKEVHMRK WYGL QEXXIVW EW EGGSYRXMRK TVMRGMTPIW ERH JMRERGMEP WXEXIQIRX HMWGPSWYVI XLI
ETTVSTVMEXIRIWW SJ GSRXVSPW ERH XLI QIXLSHW YWIH MR HIXIVQMRMRK XLI WXEXIH EQSYRXW SJ
EWWIXWERHPMEFMPMXMIW8IGLRMGEPEWWMWXERGISJXLMWREXYVIERHEHZMGISREGGSYRXMRKTVMRGMTPIW
JSVEYHMXGPMIRXWEVIERETTVSTVMEXIQIERWXSTVSQSXIXLIJEMVTVIWIRXEXMSRSJXLIJMRERGMEP
WXEXIQIRXW 8LI TVSZMWMSR SJ WYGL EHZMGI HSIW RSX KIRIVEPP] XLVIEXIR the firm’s
MRHITIRHIRGI7MQMPEVP]XLIEYHMXTVSGIWWQE]MRZSPZIEWWMWXMRKEREYHMXGPMIRXMRVIWSPZMRK
EGGSYRX VIGSRGMPMEXMSR TVSFPIQW EREP]WMRK ERH EGGYQYPEXMRK MRJSVQEXMSR JSV VIKYPEXSV]
VITSVXMRK EWWMWXMRK MR XLI TVITEVEXMSR SJ GSRWSPMHEXIH JMRERGMEP WXEXIQIRXW MRGPYHMRK XLI
XVERWPEXMSR SJ PSGEP WXEXYXSV] EGGSYRXW XS GSQTP] [MXL KVSYT EGGSYRXMRK TSPMGMIW ERH XLI
XVERWMXMSR XS E HMJJIVIRX VITSVXMRKJVEQI[SVO WYGL EW -RXIVREXMSREP %GGSYRXMRK 7XERHEVHW 
HVEJXMRKHMWGPSWYVIMXIQWTVSTSWMRKEHNYWXMRK NSYVREPIRXVMIWERHTVSZMHMRKEWWMWXERGIERH
EHZMGIMRXLITVITEVEXMSRSJPSGEPWXEXYXSV]EGGSYRXWSJWYFWMHMEV]IRXMXMIW
8LIWI WIVZMGIW EVI GSRWMHIVIH XS FI E RSVQEP TEVX SJ XLI EYHMX TVSGIWW ERH HS RSX YRHIV
RSVQEPGMVGYQWXERGIWXLVIEXIRMRHITIRHIRGI

+)2)6%0463:-7-327
8LII\EQTPIWMRTEVEKVETLWXLVSYKLMRHMGEXIXLEXWIPJVIZMI[XLVIEXWQE]
FI GVIEXIH MJ XLI JMVQ MW MRZSPZIH MR XLI TVITEVEXMSR SJ EGGSYRXMRK VIGSVHW SV JMRERGMEP
WXEXIQIRXW ERH XLSWI JMRERGMEP WXEXIQIRXW EVI WYFWIUYIRXP] XLI WYFNIGX QEXXIV SJ ER EYHMX
IRKEKIQIRX SJ XLI JMVQ 8LMW RSXMSR QE] FI IUYEPP] ETTPMGEFPI MR WMXYEXMSRW [LIR XLI
WYFNIGXQEXXIVSJXLIEWWYVERGIIRKEKIQIRXMWRSXJMRERGMEPWXEXIQIRXW*SVI\EQTPIEWIPJ
VIZMI[ XLVIEX [SYPH FI GVIEXIH MJ XLI JMVQ HIZIPSTIH ERH TVITEVIH TVSWTIGXMZI JMRERGMEP
MRJSVQEXMSRERHWYFWIUYIRXP]TVSZMHIHEWWYVERGISRXLMWTVSWTIGXMZIJMRERGMEPMRJSVQEXMSR
'SRWIUYIRXP]XLIJMVQWLSYPHIZEPYEXIXLIWMKRMJMGERGISJER]WIPJVIZMI[XLVIEXGVIEXIHF]
XLI TVSZMWMSR SJ WYGL WIVZMGIW -J XLI WIPJVIZMI[ XLVIEX MW SXLIV XLER GPIEVP] MRWMKRMJMGERX
WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS VIHYGI XLI XLVIEX XS ER
EGGITXEFPIPIZIP

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8LIJMVQSVERIX[SVOJMVQQE]TVSZMHIEREYHMXGPMIRXXLEXMWRSXEPMWXIHIRXMX][MXL
EGGSYRXMRKERHFSSOOIITMRKWIVZMGIWMRGPYHMRKTE]VSPPWIVZMGIWSJEVSYXMRISVQIGLERMGEP
REXYVITVSZMHIHER]WIPJVIZMI[XLVIEXGVIEXIHMWVIHYGIHXSEREGGITXEFPIPIZIP)\EQTPIW
SJWYGLWIVZMGIWMRGPYHI
E  VIGSVHMRK XVERWEGXMSRW JSV [LMGL XLI EYHMX GPMIRX LEW HIXIVQMRIH SV ETTVSZIH XLI
ETTVSTVMEXIEGGSYRXGPEWWMJMGEXMSR
(b) posting coded transactions to the audit client’s general ledger;


G TVITEVMRKJMRERGMEPWXEXIQIRXWFEWIHSRMRJSVQEXMSRMRXLIXVMEPFEPERGIERH
H TSWXMRKEYHMXGPMIRXETTVSZIHIRXVMIWXSXLIXVMEPFEPERGI
8LI WMKRMJMGERGI SJ ER] XLVIEX GVIEXIH WLSYPH FI IZEPYEXIH ERH MJ XLI XLVIEX MW SXLIV XLER
GPIEVP]MRWMKRMJMGERXWEJIKYEVHWWLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLI
XLVIEXXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
E QEOMRKEVVERKIQIRXWWSWYGLWIVZMGIWEVIRSXTIVJSVQIHF]EQIQFIVSJXLIEWWYVERGI
XIEQ

F MQTPIQIRXMRKTSPMGMIWERHTVSGIHYVIWXSTVSLMFMXXLIMRHMZMHYEPTVSZMHMRKWYGLWIVZMGIW
JVSQQEOMRKER]QEREKIVMEPHIGMWMSRWSRFILEPJSJXLIEYHMXGPMIRX
G VIUYMVMRKXLIWSYVGIHEXEJSVXLIEGGSYRXMRKIRXVMIWXSFISVMKMREXIHF]XLIEYHMXGPMIRX
H VIUYMVMRKXLIYRHIVP]MRKEWWYQTXMSRWXSFISVMKMREXIHERHETTVSZIHF] XLIEYHMXGPMIRX
SV
I  SFXEMRMRK EYHMX GPMIRX ETTVSZEP JSV ER] TVSTSWIH NSYVREP IRXVMIW SV SXLIV GLERKIW
EJJIGXMRKXLIJMRERGMEPWXEXIQIRXW

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8LITVSZMWMSRSJEGGSYRXMRKERHFSSOOIITMRKWIVZMGIWMRGPYHMRK TE]VSPPWIVZMGIWERH
XLITVITEVEXMSRSJJMRERGMEPWXEXIQIRXWSVJMRERGMEPMRJSVQEXMSR[LMGLJSVQWXLIFEWMWSJXLI
JMRERGMEPWXEXIQIRXWSR[LMGLXLIEYHMXVITSVXMWTVSZMHIHSRFILEPJSJEREYHMXGPMIRXXLEXMW
EPMWXIHIRXMX]QE]MQTEMVXLIMRHITIRHIRGISJXLIJMVQSVRIX[SVOJMVQSVEXPIEWXKMZIXLI
ETTIEVERGI SJ MQTEMVMRK MRHITIRHIRGI %GGSVHMRKP] RS WEJIKYEVH SXLIV XLER XLI
TVSLMFMXMSR SJ WYGL WIVZMGIW I\GITX MR IQIVKIRG] WMXYEXMSRW ERH [LIR XLI WIVZMGIW JEPP
[MXLMR XLI WXEXYXSV] EYHMX QERHEXIGSYPH VIHYGI XLI XLVIEX GVIEXIH XS ER EGGITXEFPI PIZIP
8LIVIJSVI E JMVQ SV E RIX[SVO JMVQ WLSYPH RSX [MXL XLI PMQMXIH I\GITXMSRW FIPS[
TVSZMHIWYGLWIVZMGIWXSPMWXIHIRXMXMIW[LMGLEVIEYHMXGPMIRXW
 8LI TVSZMWMSR SJ EGGSYRXMRK ERH FSSOOIITMRK WIVZMGIW SJ E VSYXMRI SV QIGLERMGEP
REXYVI XS HMZMWMSRW SV WYFWMHMEVMIW SJ PMWXIH EYHMX GPMIRXW [SYPH RSX FI WIIR EW MQTEMVMRK
MRHITIRHIRGI[MXLVIWTIGXXSXLIEYHMXGPMIRXTVSZMHIHXLEXXLIJSPPS[MRKGSRHMXMSRWEVIQIX
E XLIWIVZMGIWHSRSXMRZSPZIXLII\IVGMWISJNYHKQIRX

F XLIHMZMWMSRWSVWYFWMHMEVMIWJSV[LMGLXLIWIVZMGIMWTVSZMHIHEVIGSPPIGXMZIP]MQQEXIVMEP
XS XLI EYHMX GPMIRX SV XLI WIVZMGIW TVSZMHIH EVI GSPPIGXMZIP] MQQEXIVMEP XS XLI HMZMWMSR SV
WYFWMHMEV]ERH
G  XLI JIIW XS XLI JMVQ SV RIX[SVO JMVQ JVSQ WYGL WIVZMGIW EVI GSPPIGXMZIP] GPIEVP]
MRWMKRMJMGERX

-JWYGLWIVZMGIWEVITVSZMHIHEPPSJXLIJSPPS[MRKWEJIKYEVHWWLSYPHFIETTPMIH
E  XLI JMVQ SV RIX[SVO JMVQ WLSYPH RSX EWWYQI ER] QEREKIVMEP VSPI RSV QEOI ER]
QEREKIVMEPHIGMWMSRW

F XLIPMWXIHEYHMXGPMIRXWLSYPHEGGITXVIWTSRWMFMPMX]JSVXLIVIWYPXWSJXLI[SVOERH


G TIVWSRRIPTVSZMHMRKXLIWIVZMGIWWLSYPHRSXTEVXMGMTEXIMRXLIEYHMX

)1)6+)2'=7-89%8-327
8LITVSZMWMSRSJEGGSYRXMRKERHFSSOOIITMRKWIVZMGIWXSEYHMXGPMIRXWMRIQIVKIRG]
SV SXLIV YRYWYEP WMXYEXMSRW [LIR MX MW MQTVEGXMGEP JSV XLI EYHMX GPMIRX XS QEOI SXLIV
EVVERKIQIRXW [SYPH RSX FI GSRWMHIVIH XS TSWI ER YREGGITXEFPI XLVIEX XS MRHITIRHIRGI
TVSZMHIH

E XLIJMVQSVRIX[SVOJMVQHSIWRSXEWWYQIER]QEREKIVMEPVSPISVQEOIER]QEREKIVMEP
HIGMWMSRW
F XLIEYHMXGPMIRXEGGITXWVIWTSRWMFMPMX]JSVXLIVIWYPXWSJXLI[SVOERH
G TIVWSRRIPTVSZMHMRKXLIWIVZMGIWEVIRSXQIQFIVWSJXLIEWWYVERGIXIEQ

:%09%8-327)6:-')7
 % ZEPYEXMSR GSQTVMWIW XLI QEOMRK SJ EWWYQTXMSRW [MXL VIKEVH XS JYXYVI
HIZIPSTQIRXW XLI ETTPMGEXMSR SJ GIVXEMR QIXLSHSPSKMIW ERH XIGLRMUYIW ERH XLI
GSQFMREXMSRSJFSXLMRSVHIVXSGSQTYXIEGIVXEMRZEPYISVVERKISJZEPYIWJSVEREWWIXE
PMEFMPMX]SVJSVEFYWMRIWW EWE[LSPI
%WIPJVIZMI[XLVIEXQE]FIGVIEXIH[LIREJMVQSVRIX[SVOJMVQWTIVJSVQEZEPYEXMSR
for an audit client that is to be incorporated into the client’s financial statements.
 -J XLI ZEPYEXMSR WIVZMGI MRZSPZIW XLI ZEPYEXMSR SJ QEXXIVW QEXIVMEP XS XLI JMRERGMEP
WXEXIQIRXW ERH XLI ZEPYEXMSR MRZSPZIW E WMKRMJMGERX HIKVII SJ WYFNIGXMZMX] XLI WIPJVIZMI[
XLVIEX GVIEXIH GSYPH RSX FI VIHYGIH XS ER EGGITXEFPI PIZIP F] XLI ETTPMGEXMSR SJ ER]
WEJIKYEVH%GGSVHMRKP]WYGLZEPYEXMSRWIVZMGIWWLSYPHRSXFITVSZMHIHSVEPXIVREXMZIP]XLI
SRP]GSYVWISJEGXMSR[SYPHFIXS[MXLHVE[JVSQXLIEYHMXIRKEKIQIRX

 4IVJSVQMRK ZEPYEXMSR WIVZMGIW XLEX EVI RIMXLIV WITEVEXIP] RSV MR XLI EKKVIKEXI
QEXIVMEP XS XLI JMRERGMEP WXEXIQIRXW SV XLEX HS RSX MRZSPZI E WMKRMJMGERX HIKVII SJ
WYFNIGXMZMX]QE]GVIEXIEWIPJVIZMI[XLVIEXXLEXGSYPHFIVIHYGIHXSEREGGITXEFPIPIZIPF]
XLIETTPMGEXMSRSJWEJIKYEVHW7YGLWEJIKYEVHWQMKLXMRGPYHI
E MRZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERX[LS[EWRSXEQIQFIVSJXLIEWWYVERGI
XIEQXSVIZMI[XLI[SVOHSRISVSXLIV[MWIEHZMWIEWRIGIWWEV]
F GSRJMVQMRK[MXLXLIEYHMXGPMIRXXLIMVYRHIVWXERHMRKSJXLIYRHIVP]MRKEWWYQTXMSRWSJXLI
ZEPYEXMSRERHXLIQIXLSHSPSK]XSFIYWIHERHSFXEMRMRKETTVSZEPJSVXLIMVYWI
(c) obtaining the audit client’s acknowledgement of responsibility for the results of the work
TIVJSVQIHF]XLIJMVQERH
H QEOMRKEVVERKIQIRXWWSXLEXTIVWSRRIPTVSZMHMRKWYGLWIVZMGIWHSRSXTEVXMGMTEXIMRXLI
EYHMXIRKEKIQIRX
-R HIXIVQMRMRK [LIXLIV XLI EFSZI WEJIKYEVHW [SYPH FI IJJIGXMZI GSRWMHIVEXMSR WLSYPH FI
KMZIRXSXLIJSPPS[MRKQEXXIVW


(a) the extent of the audit client’s knowledge, experience and ability to evaluate the issues
GSRGIVRIH ERH XLI I\XIRX SJ XLIMV MRZSPZIQIRX MR HIXIVQMRMRK ERH ETTVSZMRK WMKRMJMGERX
QEXXIVWSJNYHKQIRX

F XLIHIKVIIXS[LMGLIWXEFPMWLIH QIXLSHSPSKMIWERH TVSJIWWMSREP KYMHIPMRIWEVIETTPMIH

[LIRTIVJSVQMRKETEVXMGYPEVZEPYEXMSRWIVZMGI
G  JSV ZEPYEXMSRW MRZSPZMRK WXERHEVH SV IWXEFPMWLIH QIXLSHSPSKMIW XLI HIKVII SJ
WYFNIGXMZMX]MRLIVIRXMRXLIMXIQGSRGIVRIH
H XLIVIPMEFMPMX]ERHI\XIRXSJXLIYRHIVP]MRKHEXE

I  XLI HIKVII SJ HITIRHIRGI SR JYXYVI IZIRXW SJ E REXYVI [LMGL GSYPH GVIEXI WMKRMJMGERX
ZSPEXMPMX]MRLIVIRXMRXLIEQSYRXWMRZSPZIHERH
J XLII\XIRXERHGPEVMX]SJXLIHMWGPSWYVIWMRXLIJMRERGMEPWXEXIQIRXW

 ;LIR XLI JMVQ TIVJSVQW E ZEPYEXMSR XLEX JSVQW TEVX SJ XLI WYFNIGX QEXXIV SJ ER
EWWYVERGI IRKEKIQIRX XLEXMW RSX EREYHMXIRKEKIQIRX XLIJMVQ WLSYPH GSRWMHIV ER] WIPJ
VIZMI[ XLVIEXW -J XLI XLVIEX MW SXLIV XLER GPIEVP] MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI
GSRWMHIVIH ERH ETTPMIH EW RIGIWWEV] XS IPMQMREXI XLI XLVIEX SV VIHYGI MX XS ER EGGITXEFPI
PIZIP

463:-7-323*8%<%8-327)6:-')783%9(-8'0-)287
-RQER]NYVMWHMGXMSRW XLIJMVQQE]FIEWOIHXSTVSZMHIXE\EXMSRWIVZMGIWXSEREYHMX
GPMIRX 8E\EXMSR WIVZMGIW GSQTVMWI E FVSEH VERKI SJ WIVZMGIW MRGPYHMRK GSQTPMERGI
TPERRMRK TVSZMWMSR SJ JSVQEP XE\EXMSR STMRMSRW ERH EWWMWXERGI MR XLI VIWSPYXMSR SJ XE\
HMWTYXIW7YGLEWWMKRQIRXWEVIKIRIVEPP]RSXWIIRXSGVIEXIXLVIEXWXSMRHITIRHIRGI

463:-7-323*-28)62%0%9(-87)6:-')783%9(-8'0-)287
%WIPJVIZMI[XLVIEXQE]FIGVIEXIH[LIREJMVQSVRIX[SVOJMVQTVSZMHIWMRXIVREP
EYHMXWIVZMGIW XS ER EYHMX GPMIRX -RXIVREP EYHMX WIVZMGIW QE] GSQTVMWIER I\XIRWMSR SJ XLI
firm’s audit service beyond requirements of ISAs as adopted by the respective Member
Body of SAFA, assistance in the performance of a client’s internal audit activities or
SYXWSYVGMRK SJ XLI EGXMZMXMIW -R IZEPYEXMRK ER] XLVIEXW XS MRHITIRHIRGI XLI REXYVI SJ XLI
WIVZMGI[MPPRIIHXSFIGSRWMHIVIH*SVXLMWTYVTSWIMRXIVREPEYHMXWIVZMGIWHSRSXMRGPYHI
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network firm’s personnel do not act or appear to act in a capacity equivalent to a member of
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8.127 When the firm, or a network firm, provides assistance in the performance of a client’s
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VIZMI[XLVIEXGVIEXIHQE]FIVIHYGIHXSEREGGITXEFPIPIZIPF]IRWYVMRKXLEXXLIVIMWEGPIEV
WITEVEXMSR FIX[IIR XLI QEREKIQIRX ERH GSRXVSP SJ XLI MRXIVREP EYHMX F] EYHMX GPMIRX
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8.128 Performing a significant portion of the audit client’s internal audit activities may
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MR TPEGI ERH XLI JMVQ SV RIX[SVO JMVQ WLSYPH MR TEVXMGYPEV IRWYVI XLEX XLI EYHMX GPMIRX
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F  8LI EYHMX GPMIRX HIWMKREXIW E GSQTIXIRX IQTPS]II TVIJIVEFP] [MXLMR WIRMSV
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SJXLIJMVQWLSYPHFIMQTPIQIRXIH
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generate information forming part of a client’s financial statements may create a selfVIZMI[
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G  8LI EYHMX GPMIRX QEOIW EPP QEREKIQIRX HIGMWMSRW [MXL VIWTIGX XS XLI HIWMKR ERH
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H 8LIEYHMXGPMIRXIZEPYEXIWXLIEHIUYEG]ERHVIWYPXWSJXLIHIWMKRERHMQTPIQIRXEXMSRSJ
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used to generate information forming part of a client’s financial statements may also create
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client’s accounts or financial statements. -R TVEGXMGI WYGL EWWMWXERGI QE] FI KMZIR
(particularly in emergency situations) but only on the understanding that the firm’s or
network firm’s personnel will not be involved in:
E 1EOMRKQEREKIQIRXHIGMWMSRW

F %TTVSZMRKSVWMKRMRKEKVIIQIRXWSVSXLIVWMQMPEVHSGYQIRXWSV
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E  8LI WXEJJ TVSZMHMRK XLI EWWMWXERGI WLSYPH RSX FI KMZIR EYHMX VIWTSRWMFMPMX] JSV ER]
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VIXVMIZEPMRVIPEXMSRXSEHMWTYXISVPMXMKEXMSR


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E 8LIQEXIVMEPMX]SJXLIEQSYRXWMRZSPZIH
F 8LIHIKVIISJWYFNIGXMZMX]MRLIVIRXMRXLIQEXXIVGSRGIVRIHERH
G 8LIREXYVISJXLIIRKEKIQIRX

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MRGPYHI
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QEREKIVMEPHIGMWMSRWSRFILEPJSJXLIGPMIRX
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SV
G 8LIMRZSPZIQIRXSJSXLIVWWYGLEWMRHITIRHIRXI\TIVXW

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HIGMWMSRWSRFILEPJSJXLIEYHMXGPMIRXXLIXLVIEXWGVIEXIHGSYPHRSXFIVIHYGIHXSER
EGGITXEFPI PIZIP F] XLI ETTPMGEXMSR SJ ER] WEJIKYEVH 8LIVIJSVI XLI JMVQ SV RIX[SVO
JMVQWLSYPHRSXTIVJSVQXLMWX]TISJWIVZMGIJSVEREYHMXGPMIRX


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0IKEPWIVZMGIWEVIHIJMRIHEWER]WIVZMGIWJSV[LMGLXLITIVWSRTVSZMHMRKXLIWIVZMGIW
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GSQQIVGMEPWIVZMGIWXSGPMIRXWWYGLEWGSRXVEGXWYTTSVXPMXMKEXMSRQIVKIVWERHEGUYMWMXMSR
advice and support and the provision of assistance to clients’ internal legal departments. The
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GVIEXIFSXLWIPJVIZMI[ERHEHZSGEG]XLVIEXW

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materiality of any matter in relation to the entities’ financial statements. The safeguards set
SYX MR TEVEKVETL  QE] FI ETTVSTVMEXI MR VIHYGMRK ER] XLVIEXW XS MRHITIRHIRGI XS ER
EGGITXEFPIPIZIP-RGMVGYQWXERGIW[LIRXLIXLVIEXXSMRHITIRHIRGIGERRSXFIVIHYGIHXSER
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JVSQXLIEYHMXIRKEKIQIRX
8LITVSZMWMSRSJPIKEPWIVZMGIWXSEREYHMXGPMIRX[LMGLMRZSPZIQEXXIVWXLEX[SYPHRSX
FII\TIGXIHXSLEZIEQEXIVMEPIJJIGXSRXLIJMRERGMEPWXEXIQIRXWEVIRSXGSRWMHIVIHXSGVIEXI
ERYREGGITXEFPIXLVIEXXSMRHITIRHIRGI
 8LIVI MW E HMWXMRGXMSR FIX[IIR EHZSGEG] ERH EHZMGI 0IKEP WIVZMGIW XS WYTTSVX ER
EYHMXGPMIRXMRXLII\IGYXMSRSJEXVERWEGXMSRIKGSRXVEGXWYTTSVXPIKEPEHZMGIPIKEPHYI
HMPMKIRGI ERH VIWXVYGXYVMRK  QE] GVIEXI WIPJVIZMI[ XLVIEXW LS[IZIV WEJIKYEVHW QE] FI
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MQTEMVMRHITIRHIRGITVSZMHIHXLEX

E 1IQFIVWSJXLIEWWYVERGIXIEQEVIRSXMRZSPZIHMRTVSZMHMRKXLIWIVZMGIERH
F  -R VIPEXMSR XS XLI EHZMGI TVSZMHIH XLI EYHMX GPMIRX QEOIW XLI YPXMQEXI HIGMWMSR SV MR
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JMRERGMEP WXEXIQIRXW SJ XLI EYHMX GPMIRX XLI JMVQ WLSYPH IZEPYEXI XLI WMKRMJMGERGI SJ ER]
EHZSGEG]ERHWIPJVIZMI[XLVIEXWGVIEXIHERHMJXLIXLVIEXMWSXLIVXLERGPIEVP]MRWMKRMJMGERX
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XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI


E  4SPMGMIW ERH TVSGIHYVIW XS TVSLMFMX MRHMZMHYEPW EWWMWXMRK XLI EYHMX GPMIRX JVSQ QEOMRK
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MRXIVIWXJEQMPMEVMX]ERHMRXMQMHEXMSRXLVIEXW8LIWMKRMJMGERGISJXLIXLVIEX[MPPHITIRHYTSR
JEGXSVWWYGLEW

E 8LIVSPISJXLITIVWSRXSFIVIGVYMXIHERH
F 8LIREXYVISJXLIEWWMWXERGIWSYKLX
8LIJMVQGSYPHKIRIVEPP]TVSZMHIWYGLWIVZMGIWEWVIZMI[MRKXLITVSJIWWMSREPUYEPMJMGEXMSRW
SJERYQFIVSJETTPMGERXW ERHTVSZMHIEHZMGISRXLIMVWYMXEFMPMX] JSVXLITSWX -REHHMXMSR
XLI JMVQ GSYPH KIRIVEPP] TVSHYGI E WLSVXPMWX SJ GERHMHEXIW JSV MRXIVZMI[ TVSZMHIH MX LEW
FIIRHVE[RYTYWMRKGVMXIVMEWTIGMJMIHF]XLIEWWYVERGIGPMIRX8LIWMKRMJMGERGISJXLIXLVIEX
GVIEXIHWLSYPHFIIZEPYEXIHERHMJXLIXLVIEXMWSXLIVXLERGPIEVP]MRWMKRMJMGERXWEJIKYEVHW
WLSYPHFIGSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP-R
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 8LI TVSZMWMSR SJ GSVTSVEXI JMRERGI WIVZMGIW EHZMGI SV EWWMWXERGI XS ER EWWYVERGI
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WIVZMGIW XLIMRHITIRHIRGI XLVIEXWGVIEXIH [SYPH FI WS WMKRMJMGERX RS WEJIKYEVHW GSYPHFI
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or underwriting of an assurance client’s shares is not compatible with providing
EWWYVERGIWIVZMGIW1SVISZIVGSQQMXXMRKXLIEWWYVERGIGPMIRXXSXLIXIVQWSJEXVERWEGXMSR
SVGSRWYQQEXMRKEXVERWEGXMSRSRFILEPJSJXLIGPMIRX[SYPHGVIEXIEXLVIEXXSMRHITIRHIRGI
WSWMKRMJMGERXRSWEJIKYEVHGSYPHVIHYGIXLIXLVIEXXSEREGGITXEFPIPIZIP -RXLIGEWISJER
EYHMX GPMIRX XLI TVSZMWMSR SJ XLSWI GSVTSVEXI JMRERGI WIVZMGIW VIJIVVIH XS EFSZI F] E
JMVQ SV E RIX[SVO JMVQ [SYPH GVIEXI E XLVIEX XS MRHITIRHIRGI WS WMKRMJMGERX RS
WEJIKYEVH GSYPH VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP %GGSVHMRKP] RS JMVQ SV
RIX[SVOJMVQWLSYPHTVSZMHIGSVTSVEXIJMRERGIERHWMQMPEVEGXMZMXMIWXSEREWWYVERGI
GPMIRX


 3XLIV GSVTSVEXI JMRERGI WIVZMGIW QE] GVIEXI EHZSGEG] SV WIPJVIZMI[ XLVIEXW
LS[IZIV WEJIKYEVHW QE] FI EZEMPEFPI XS VIHYGI XLIWI XLVIEXW XS ER EGGITXEFPI PIZIP
)\EQTPIW SJ WYGL WIVZMGIW MRGPYHI EWWMWXMRK E GPMIRX MR HIZIPSTMRK GSVTSVEXI WXVEXIKMIW
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GSRWMHIVIHMRGPYHI
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G )RWYVMRKXLIJMVQHSIWRSXGSQQMXXLIEWWYVERGIGPMIRXXSXLIXIVQWSJER]XVERWEGXMSRSV
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firm’s total fees, the dependence on that client or client group and concern about the
TSWWMFMPMX]SJPSWMRKXLIGPMIRXQE]GVIEXIEWIPJMRXIVIWXXLVIEX8LIWMKRMJMGERGISJXLIXLVIEX
[MPPHITIRHYTSRJEGXSVWWYGLEW
E 8LIWXVYGXYVISJXLIJMVQERH

F ;LIXLIVXLIJMVQMW[IPPIWXEFPMWLIHSVRI[P]GVIEXIH
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XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
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GLEVKIH[MXLKSZIVRERGI

F 8EOMRKWXITWXSVIHYGIHITIRHIRG]SRXLIGPMIRX
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E  4SPMGMIW ERH TVSGIHYVIW XS QSRMXSV ERH MQTPIQIRX UYEPMX] GSRXVSP SJ EWWYVERGI
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F -RZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERX[LS[EWRSXEQIQFIVSJXLIEWWYVERGI
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E (MWGYWWMRKXLIPIZIPSJSYXWXERHMRKJIIW[MXLXLIEYHMXGSQQMXXIISVSXLIVWGLEVKIH[MXL
KSZIVRERGIERH
F -RZSPZMRKEREHHMXMSREPTVSJIWWMSREPEGGSYRXERX[LSHMHRSXXEOITEVXMRXLIEWWYVERGI
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VIETTSMRXIH

46-'-2+
 ;LIR E JMVQ SFXEMRW ER EWWYVERGI IRKEKIQIRX EX E PS[IV JII PIZIP XLER XLEX
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VIHYGIHXSEREGGITXEFPIPIZIPF]XLIETTPMGEXMSRSJER]WEJIKYEVHEGGSVHMRKP]EJMVQ
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WYGLEW

E 8LIVERKISJTSWWMFPIJIIEQSYRXW
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I 8LIIJJIGXSJXLIIZIRXSVXVERWEGXMSRSRXLIEWWYVERGIIRKEKIQIRX
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XSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
E  (MWGPSWMRK XS XLI EYHMX GSQQMXXII SV SXLIVW GLEVKIH [MXL KSZIVRERGI XLI I\XIRX SJ
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F 6IZMI[SVHIXIVQMREXMSRSJXLIJMREPJIIF]ERYRVIPEXIHXLMVHTEVX]SV
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client’s business operations. The firm and the client’s management may be placed in
adversarial positions by litigation, affecting management’s willingness to make complete
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E 8LIQEXIVMEPMX]SJXLIPMXMKEXMSR
F 8LIREXYVISJXLIEWWYVERGIIRKEKIQIRXERH
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ETTPMIHMJRIGIWWEV]XSVIHYGIXLIXLVIEXWXSEREGGITXEFPIPIZIP
E  (MWGPSWMRK XS XLI EYHMX GSQQMXXII SV SXLIVW GLEVKIH [MXL KSZIVRERGI XLI I\XIRX ERH
REXYVISJXLIPMXMKEXMSR

F -JXLIPMXMKEXMSRMRZSPZIWEQIQFIVSJXLIEWWYVERGIXIEQVIQSZMRKXLEXMRHMZMHYEP
JVSQXLIEWWYVERGIXIEQSV
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7)'8-32*MRERGMEPMRXIVIWXW
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 7)'8-32
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 4VSJIWWMSREP EGGSYRXERXW MR FYWMRIWW WLSYPH GSQTP] [MXL XLI JYRHEQIRXEP TVMRGMTPIW
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 8LI IRZMVSRQIRX MR [LMGL TVSJIWWMSREP EGGSYRXERXW STIVEXI QE] KMZI VMWI XS WTIGMJMG
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G %HZSGEG]
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E 'SQQIRXMRKTYFPMGP]SRJYXYVIIZIRXWMRTEVXMGYPEVGMVGYQWXERGIW[LIVISYXGSQIW
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JVSQXLEXMRJPYIRGI
F 0SRKEWWSGMEXMSR[MXLFYWMRIWWGSRXEGXWMRJPYIRGMRKFYWMRIWWHIGMWMSRW
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MRWMKRMJMGERX
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E 8LVIEXSJHMWQMWWEPSVVITPEGIQIRXSJXLITVSJIWWMSREPEGGSYRXERXMRFYWMRIWWSVE
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F  % HSQMRERX TIVWSREPMX] EXXIQTXMRK XS MRJPYIRGI XLI HIGMWMSR QEOMRK TVSGIWW JSV
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(a) The employing organization’s systems of corporate oversight or other oversight
WXVYGXYVIW
(b) The employing organization’s ethics and conduct programs.
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(h) Timely communication of the employing organization’s policies and procedures, and
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SVKERM^EXMSR ERH XLIMV TVSJIWWMSREP SFPMKEXMSRW XS GSQTP] [MXL XLI JYRHEQIRXEP TVMRGMTPIW
EVI MR GSRJPMGX 3VHMREVMP] TVSJIWWMSREP EGGSYRXERXW WLSYPH WYTTSVX XLI PIKMXMQEXI ERH
IXLMGEPSFNIGXMZIWIWXEFPMWLIHF]XLIMVIQTPS]IVWERHXLIVYPIWERHTVSGIHYVIWHVE[RYTMR
WYTTSVX SJ XLSWI SFNIGXMZIW 2IZIVXLIPIWW [LIVI GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIW MW XLVIEXIRIH TVSJIWWMSREP EGGSYRXERXW QYWX GSRWMHIV XLIMV VIWTSRWI XS XLI
GMVGYQWXERGIW

%WEGSRWIUYIRGISJXLIMVVIWTSRWMFMPMXMIWXSXLIMVIQTPS]MRKSVKERM^EXMSRTVSJIWWMSREP
EGGSYRXERXWQE]JMRHXLIQWIPZIWYRHIVTVIWWYVIXSEGXSVFILEZIMR[E]WXLEXGSYPHHMVIGXP]
SV MRHMVIGXP] XLVIEXIR GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW 7YGL TVIWWYVI QE] FI
I\TPMGMXSVMQTPMGMXMXQE]GSQIJVSQWYTIVZMWSVWQEREKIVWHMVIGXSVWSVSXLIVMRHMZMHYEPW
[MXLMR XLI IQTPS]MRK SVKERM^EXMSR 4VSJIWWMSREP EGGSYRXERXW QE] JMRH XLIQWIPZIW YRHIV
TVIWWYVIXS
E %GXGSRXVEV]XSPE[SVVIKYPEXMSR

F %GXGSRXVEV]XSXIGLRMGEPSVTVSJIWWMSREPWXERHEVHW
G *EGMPMXEXIYRIXLMGEPSVMPPIKEPIEVRMRKWQEREKIQIRXWXVEXIKMIW
H  0MI XS SV SXLIV[MWI MRXIRXMSREPP] QMWPIEH MRGPYHMRK QMWPIEHMRK F] OIITMRK WMPIRX
SXLIVWMRTEVXMGYPEV
8LSWIEGXMRKEWEYHMXSVWXSXLIIQTPS]MRKSVKERM^EXMSRSV

6IKYPEXSVW
I -WWYISVSXLIV[MWIFIEWWSGMEXIH[MXLEJMRERGMEPSVRSRJMRERGMEPVITSVXXLEXQEXIVMEPP]
QMWVITVIWIRXWXLIJEGXWMRGPYHMRKWXEXIQIRXWMRGSRRIGXMSR[MXLJSVI\EQTPI
8LIJMRERGMEPWXEXIQIRXW
8E\GSQTPMERGI
0IKEPGSQTPMERGISV
6ITSVXWVIUYMVIHF]WIGYVMXMIWVIKYPEXSVW
 8LI WMKRMJMGERGI SJ XLVIEXW EVMWMRK JVSQ WYGL TVIWWYVIW WYGL EW MRXMQMHEXMSR XLVIEXW
WLSYPHFI IZEPYEXIHERH MJ XLI] EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI
GSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP7EJIKYEVHWXLEX
QMKLXQMXMKEXIWYGLTVIWWYVIWMRGPYHI
E  3FXEMRMRK EHZMGI [LIVI ETTVSTVMEXI JVSQ [MXLMR XLI IQTPS]MRK SVKERM^EXMSR ER
MRHITIRHIRXTVSJIWWMSREPEHZMWSVSVEVIPIZERXTVSJIWWMSREPFSH]

F 8LII\MWXIRGISJEJSVQEPHMWTYXIVIWSPYXMSRTVSGIWW[MXLMRXLIIQTPS]MRKSVKERM^EXMSR
G 7IIOMRKPIKEPEHZMGI


 ;LIVI MX MW RSX TSWWMFPI XS VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP TVSJIWWMSREP
EGGSYRXERXWQE] GSRGPYHI XLEX MX MW ETTVSTVMEXI XS GSRWMHIV VIWMKRMRK JVSQ XLI IQTPS]MRK
SVKERM^EXMSR -R GMVGYQWXERGIW [LIVI TVSJIWWMSREP EGGSYRXERXW FIPMIZI XLEX YRIXLMGEP
FILEZMSYVW SV EGXMSRW F] SXLIVW [MPP GSRXMRYI XS SGGYV [MXLMR XLI IQTPS]MRK
SVKERM^EXMSRXLI]WLSYPHWIIOPIKEPEHZMGIERHEJXIVGSRWMHIVMRKWYGLEHZMGIMJHIIQ
RIGIWWEV]WLSYPHGSRWMHIVVIWMKREXMSRJVSQXLIWIVZMGISJXLIIQTPS]MRKSVKERM^EXMSR


 7)'8-32
46)4%6%8-32%2(6)4368-2+3*-2*361%8-32
 4VSJIWWMSREP EGGSYRXERXW EVI SJXIR MRZSPZIH MR XLI TVITEVEXMSR ERH VITSVXMRK SJ
MRJSVQEXMSR XLEX QE] IMXLIV FI QEHI TYFPMG SV YWIH F] SXLIVW MRWMHI SV SYXWMHI XLI
IQTPS]MRK SVKERM^EXMSR 7YGL MRJSVQEXMSR QE] MRGPYHI JMRERGMEP SV QEREKIQIRX
MRJSVQEXMSR JSV I\EQTPI JMRERGMEP WXEXIQIRXW QEREKIQIRX HMWGYWWMSR ERH EREP]WMW ERH
XLI QEREKIQIRX PIXXIV SJ VITVIWIRXEXMSR TVSZMHIH XS XLI EYHMXSVW EW TEVX SJ ER EYHMX SJ
JMRERGMEP WXEXIQIRXW 4VSJIWWMSREP EGGSYRXERXW WLSYPH TVITEVI SV TVIWIRX WYGL MRJSVQEXMSR
JEMVP] LSRIWXP] ERH MR EGGSVHERGI [MXL VIPIZERX TVSJIWWMSREP WXERHEVHW WS XLEX XLI
MRJSVQEXMSR[MPPFIYRHIVWXSSHMRMXWGSRXI\X 4VSJIWWMSREPEGGSYRXERXW WLSYPHQEMRXEMR
MRJSVQEXMSRJSV[LMGLXLI]EVIVIWTSRWMFPIMREQERRIVXLEX

E (IWGVMFIWGPIEVP]XLIXVYIREXYVISJFYWMRIWWXVERWEGXMSRWEWWIXWSVPMEFMPMXMIW
F 'PEWWMJMIWERHVIGSVHWMRJSVQEXMSRMREXMQIP]ERHTVSTIVQERRIVERH

G (SIW RSXQEXIVMEPP]QMWVITVIWIRXXLIJEGXW
 8LVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW JSV I\EQTPI WIPJMRXIVIWX SV
MRXMQMHEXMSRXLVIEXWXSSFNIGXMZMX]SVTVSJIWWMSREPGSQTIXIRGIERHHYIGEVIQE]EVMWI[LIVI
TVSJIWWMSREP EGGSYRXERXW QE] FI TVIWWYVIH IMXLIV I\XIVREPP] SV F] XLI TSWWMFMPMX] SJ
TIVWSREP KEMR  XS EPPS[ XLIQWIPZIW XS FI EWWSGMEXIH [MXL QMWPIEHMRK MRJSVQEXMSR SV XS
FIGSQIEWWSGMEXIH[MXLQMWPIEHMRKMRJSVQEXMSRXLVSYKLXLIEGXMSRWSJSXLIVW
8LIWMKRMJMGERGISJWYGLXLVIEXW[MPPHITIRHSRJEGXSVWWYGLEWXLIWSYVGISJXLITVIWWYVI
ERHXLIHIKVIIXS[LMGLXLIMRJSVQEXMSRMWSVQE]FIQMWPIEHMRK8LIWMKRMJMGERGISJXLI
XLVIEXW WLSYPH FI IZEPYEXIH ERH MJ XLI] EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX WEJIKYEVHW
WLSYPHFIGSRWMHIVIH ERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP7YGL
WEJIKYEVHWQMKLXMRGPYHIGSRWYPXEXMSR[MXLWYTIVMSVW[MXLMRXLIIQTPS]MRKSVKERM^EXMSRJSV
I\EQTPIXLIEYHMXGSQQMXXIISVSXLIVFSH]VIWTSRWMFPIJSVKSZIVRERGISV[MXLEVIPIZERX
TVSJIWWMSREPFSH]

 ;LIVI MX MW RSX TSWWMFPI XS VIHYGI XLI XLVIEX XS ER EGGITXEFPI PIZIP TVSJIWWMSREP
EGGSYRXERXW WLSYPH VIJYWI XS VIQEMR EWWSGMEXIH [MXL MRJSVQEXMSR XLI] GSRWMHIV MW SV
QE]FIQMWPIEHMRK7LSYPHXLI]FIE[EVIXLEXXLIMWWYERGISJQMWPIEHMRKMRJSVQEXMSR
MW IMXLIV WMKRMJMGERX SV TIVWMWXIRX XLI] WLSYPH GSRWMHIV MRJSVQMRK ETTVSTVMEXI
EYXLSVMXMIW MR PMRI [MXL XLI KYMHERGI MR 7IGXMSR  8LI] QE] EPWS [MWL XS XEOI PIKEP
EHZMGISVGSRWMHIVVIWMKREXMSR


 7)'8-32
%'8-2+;-8,79**-'-)28)<4)68-7)
 8LI JYRHEQIRXEP TVMRGMTPI SJ TVSJIWWMSREP GSQTIXIRGI ERH HYI GEVI VIUYMVIW XLEX
TVSJIWWMSREPEGGSYRXERXWWLSYPHSRP]YRHIVXEOIWMKRMJMGERXXEWOWJSV[LMGLXLI]LEZISVGER
SFXEMR WYJJMGMIRX WTIGMJMG XVEMRMRK SV I\TIVMIRGI 8LI] WLSYPH RSX MRXIRXMSREPP] QMWPIEH
IQTPS]IVWEWXSLS[QYGLI\TIVXMWISVI\TIVMIRGIXLI]LEZIRSVWLSYPHXLI]JEMPXSWIIO
ETTVSTVMEXII\TIVXEHZMGIERHEWWMWXERGI[LIRVIUYMVIH
'MVGYQWXERGIWXLEXQE]XLVIEXIRXLIEFMPMX]SJTVSJIWWMSREPEGGSYRXERXWXSTIVJSVQXLIMV
HYXMIW[MXLXLIETTVSTVMEXIHIKVIISJTVSJIWWMSREPGSQTIXIRGIERHHYIGEVIMRGPYHI
E -RWYJJMGMIRXXMQIJSVTVSTIVP]TIVJSVQMRKSVGSQTPIXMRKXLIVIPIZERXHYXMIW

F  -RGSQTPIXI VIWXVMGXIH SV SXLIV[MWI MREHIUYEXI MRJSVQEXMSR JSV TIVJSVQMRK XLI HYXMIW
TVSTIVP]
G -RWYJJMGMIRXI\TIVMIRGIXVEMRMRKERHSVIHYGEXMSR

H -REHIUYEXIVIWSYVGIWJSVXLITVSTIVTIVJSVQERGISJXLIHYXMIW
8LIWMKRMJMGERGISJWYGLXLVIEXW[MPPHITIRHSRJEGXSVWWYGLEWXLII\XIRXXS[LMGLXLI
TVSJIWWMSREPEGGSYRXERXWEVI[SVOMRK[MXLSXLIVWXLIMVVIPEXMZIWIRMSVMX]MRXLIFYWMRIWWERH
XLI PIZIP SJ WYTIVZMWMSR ERH VIZMI[ ETTPMIH XS XLIMV [SVO 8LI WMKRMJMGERGI SJ XLI XLVIEXW
WLSYPHFI IZEPYEXIHERH MJ XLI] EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI
GSRWMHIVIHERHETTPMIHEWRIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP7EJIKYEVHWXLEX
QE]FIGSRWMHIVIHMRGPYHI

E 3FXEMRMRKEHHMXMSREPEHZMGISVXVEMRMRK
F )RWYVMRKXLEXXLIVIMWEHIUYEXIXMQIEZEMPEFPIJSVTIVJSVQMRKXLIVIPIZERXHYXMIW
G 3FXEMRMRKEWWMWXERGIJVSQWSQISRI[MXLXLIRIGIWWEV]I\TIVXMWI

H 'SRWYPXMRK[LIVIETTVSTVMEXI[MXL
7YTIVMSVW[MXLMRXLIIQTPS]MRKSVKERM^EXMSR
-RHITIRHIRXI\TIVXWSV

%VIPIZERXTVSJIWWMSREPFSH]
 ;LIVI XLVIEXW GERRSX FI IPMQMREXIH SV VIHYGIH XS ER EGGITXEFPI PIZIP TVSJIWWMSREP
EGGSYRXERXWWLSYPHVIJYWIXSTIVJSVQXLIHYXMIWMRUYIWXMSRQEOMRKGPIEVXLIMVVIEWSRWJSV
HSMRKWS


 7)'8-32
*-2%2'-%0-28)6)787
4VSJIWWMSREPEGGSYRXERXWMRFYWMRIWWQE]LEZIJMRERGMEPMRXIVIWXWXLEXGSYPHMRGIVXEMR
GMVGYQWXERGIW KMZI VMWI XS XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW *SV
I\EQTPI WIPJMRXIVIWX XLVIEXW XS SFNIGXMZMX] SV GSRJMHIRXMEPMX] QE] EVMWI XLVSYKL XLI
I\MWXIRGISJXLIQSXMZIERHSTTSVXYRMX]XSQERMTYPEXITVMGIWIRWMXMZIMRJSVQEXMSRMRSVHIVXS
KEMR JMRERGMEPP] )\EQTPIWMRGPYHI WMXYEXMSRW [LIVI XLI TVSJIWWMSREP EGGSYRXERX SV ER
MQQIHMEXISVGPSWIJEQMP]QIQFIV
E  ,SPHW E WMKRMJMGERX HMVIGX SV MRHMVIGX JMRERGMEP MRXIVIWX MR XLI IQTPS]MRK
SVKERM^EXMSR ERH XLI ZEPYI SJ XLEX JMRERGMEP MRXIVIWX GSYPH FI HMVIGXP] EJJIGXIH F]
HIGMWMSRWQEHIF]XLITVSJIWWMSREPEGGSYRXERX
F -WIPMKMFPIJSVETVSJMXVIPEXIHFSRYWERHXLIZEPYISJXLEXFSRYWGSYPHFIHMVIGXP]
EJJIGXIHF]HIGMWMSRWQEHIF]XLITVSJIWWMSREPEGGSYRXERX
G ,SPHWHMVIGXP]SVMRHMVIGXP]WLEVISTXMSRWMRXLIIQTPS]MRKSVKERM^EXMSRXLIZEPYI
SJ[LMGLGSYPHFIHMVIGXP]EJJIGXIHF]HIGMWMSRWQEHIF]XLITVSJIWWMSREPEGGSYRXERX
H  ,SPHW HMVIGXP] SV MRHMVIGXP] WLEVI STXMSRW MR XLI IQTPS]MRK SVKERM^EXMSR [LMGL
EVISV[MPPWSSRFIIPMKMFPIJSVGSRZIVWMSRSV
I  1E] UYEPMJ] JSV WLEVI STXMSRW MR XLI IQTPS]MRK SVKERM^EXMSR SV TIVJSVQERGI VIPEXIH
FSRYWIWMJGIVXEMRXEVKIXWEVIEGLMIZIH
 -R IZEPYEXMRK XLI WMKRMJMGERGI SJ WYGL E XLVIEX ERH XLI ETTVSTVMEXI WEJIKYEVHW XS FI
ETTPMIHXSIPMQMREXIXLIXLVIEXSVVIHYGIMXXSEREGGITXEFPIPIZIPTVSJIWWMSREPEGGSYRXERXW
QYWX I\EQMRI XLI REXYVI SJ XLI JMRERGMEP MRXIVIWX 8LMW MRGPYHIW ER IZEPYEXMSR SJ XLI
WMKRMJMGERGI SJ XLI JMRERGMEP MRXIVIWX ERH [LIXLIV MX MW HMVIGX SV MRHMVIGX 'PIEVP] [LEX
GSRWXMXYXIW E WMKRMJMGERX SV ZEPYEFPI WXEOI MR ER SVKERM^EXMSR [MPP ZEV] JVSQ MRHMZMHYEP XS
MRHMZMHYEPHITIRHMRKSRTIVWSREPGMVGYQWXERGIW
 -J XLVIEXW EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX WEJIKYEVHW WLSYPH FI GSRWMHIVIH ERH
ETTPMIHEWRIGIWWEV]XSVIHYGIXLIQXSEREGGITXEFPIPIZIP7YGLWEJIKYEVHWQMKLXMRGPYHI
E  %PIVXRIWW XS XLI XLVIEXW MRLIVIRX MR LSPHMRK SV XVEHMRK GETMXEP MRWXVYQIRXW MR XLI
IQTPS]MRKSVKERM^EXMSR
F (MWGPSWYVISJEPPVIPIZERXMRXIVIWXWERHSJER]TPERWXSXVEHIMRVIPIZERXWLEVIWXSXLSWI
GLEVKIH[MXLXLIKSZIVRERGISJXLIIQTPS]MRKSVKERM^EXMSRMREGGSVHERGI[MXLER]MRXIVREP
TSPMGMIW
G 'SRWYPXEXMSR[LIVIETTVSTVMEXI[MXLWYTIVMSVW[MXLMRXLIIQTPS]MRKSVKERM^EXMSR
H  'SRWYPXEXMSR [LIVI ETTVSTVMEXI [MXL XLSWI GLEVKIH [MXL XLI KSZIVRERGI SJ XLI
IQTPS]MRKSVKERM^EXMSRSVVIPIZERXTVSJIWWMSREPFSHMIW
I -RXIVREPERHI\XIVREPEYHMXTVSGIHYVIW
J  9TXSHEXI IHYGEXMSR SR IXLMGEP MWWYIW ERH XLI PIKEP VIWXVMGXMSRW ERH SXLIV VIKYPEXMSRW
EVSYRHTSXIRXMEPMRWMHIVXVEHMRK
4VSJIWWMSREPEGGSYRXERXWWLSYPHRIMXLIVQERMTYPEXIMRJSVQEXMSRRSVYWITVMZMPIKIH
MRJSVQEXMSRJSVTIVWSREPKEMR


 7)'8-32
-2(9')1)287

6)')-:-2+3**)673*-2(9')1)287
 4VSJIWWMSREP EGGSYRXERXW MR FYWMRIWW QE] JMRH XLIQWIPZIW MR WMXYEXMSRW [LIVI XLI] SV
MQQIHMEXISVGPSWIJEQMP]QIQFIVWEVISJJIVIHMRHYGIQIRXW-RHYGIQIRXWQE]XEOIZEVMSYW
JSVQW MRGPYHMRK KMJXW LSWTMXEPMX] TVIJIVIRXMEP XVIEXQIRX ERH MRETTVSTVMEXI ETTIEPW XS
JVMIRHWLMTSVPS]EPX]
 3JJIVW SJ MRHYGIQIRXW QE] GVIEXI XLVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP
TVMRGMTPIW;LIRXLI]SVXLIMVMQQIHMEXISVGPSWIJEQMP]QIQFIVWEVISJJIVIHMRHYGIQIRXW
TVSJIWWMSREP EGGSYRXERXW WLSYPH GSRWMHIV XLI WMXYEXMSR GEVIJYPP] 7IPJMRXIVIWX XLVIEXW XS
SFNIGXMZMX] SV GSRJMHIRXMEPMX] QE] EVMWI [LIVI SJJIVW EVI QEHI MR ER EXXIQTX XS YRHYP]
MRJPYIRGIEGXMSRWSVHIGMWMSRWIRGSYVEKIMPPIKEPSVHMWLSRIWXFILEZMSVSVSFXEMRGSRJMHIRXMEP
MRJSVQEXMSR-RXMQMHEXMSRXLVIEXWXSSFNIGXMZMX]SVGSRJMHIRXMEPMX]QE]EVMWIMJERSJJIVSJER
MRHYGIQIRX[LIXLIVEGGITXIHSVHIGPMRIHMWJSPPS[IHF]XLVIEXWXSQEOIXLEXSJJIVTYFPMG
ERH HEQEKI XLI VITYXEXMSR SJ IMXLIV XLI TVSJIWWMSREP EGGSYRXERX SV ER MQQIHMEXI SV GPSWI
JEQMP]QIQFIV

8LIWMKRMJMGERGISJWYGLXLVIEXW[MPPHITIRHSRXLIREXYVIZEPYIERHMRXIRXFILMRHXLI
SJJIV ;LIR SJJIVW SJ MRHYGIQIRXW [LMGL E VIEWSREFPI ERH MRJSVQIH XLMVH TEVX] LEZMRK
ORS[PIHKI SJ EPP VIPIZERX MRJSVQEXMSR [SYPH GSRWMHIV MRWMKRMJMGERX ERH RSX MRXIRHIH XS
IRGSYVEKIYRIXLMGEPFILEZMSYVWEVIQEHIMRERSTIRQERRIVXLIRTVSJIWWMSREPEGGSYRXERXW
QE]GSRGPYHIXLEXXLISJJIVWEVIQEHIMRXLIRSVQEPGSYVWISJTYFPMGVIPEXMSRW[MXLSYXXLI
WTIGMJMG MRXIRX XS MRJPYIRGI HIGMWMSR QEOMRK SV XS SFXEMR MRJSVQEXMSR -R WYGL GEWIW XLI]
QE] KIRIVEPP] GSRGPYHI XLEX XLIVI MW RS WMKRMJMGERX XLVIEX XS GSQTPMERGI [MXL XLI
JYRHEQIRXEPTVMRGMTPIW

 -J IZEPYEXIH XLVIEXW EVI SXLIV XLER GPIEVP] MRWMKRMJMGERX TVSJIWWMSREP EGGSYRXERXW
WLSYPH RSX EGGITX MRHYGIQIRXW %W XLI VIEP SV ETTEVIRX XLVIEXW XS GSQTPMERGI [MXL XLI
JYRHEQIRXEPTVMRGMTPIWHSRSXQIVIP]EVMWIJVSQEGGITXERGISJMRHYGIQIRXWFYXWSQIXMQIW
QIVIP] JVSQ XLI JEGX SJ XLI SJJIV LEZMRK FIIR QEHI EHHMXMSREP WEJIKYEVHW WLSYPH FI
EHSTXIH4VSJIWWMSREPEGGSYRXERXWWLSYPHEWWIWWXLIVMWOEWWSGMEXIH[MXLEPPWYGLSJJIVWERH
WLSYPH
E ;LIVIWYGLSJJIVWLEZIFIIRQEHIMQQIHMEXIP]MRJSVQLMKLIVPIZIPWSJQEREKIQIRXSV
XLSWIGLEVKIH[MXLKSZIVRERGISJXLIIQTPS]MRKSVKERM^EXMSR
F 'SRWMHIV[LIXLIVMXMWETTVSTVMEXIXSMRJSVQXLMVHTEVXMIWSJXLISJJIV –JSVI\EQTPIE
TVSJIWWMSREP FSH] SV XLI IQTPS]IV SJ XLI MRHMZMHYEP [LS QEHI XLI SJJIV TVSJIWWMSREP
EGGSYRXERXWWLSYPHLS[IZIVGSRWMHIVWIIOMRKPIKEPEHZMGIFIJSVIXEOMRKWYGLEWXIT
G  %HZMWI MQQIHMEXI SV GPSWI JEQMP] QIQFIVW SJ VIPIZERX XLVIEXW ERH WEJIKYEVHW [LIVI
XLI]EVITSXIRXMEPP]MRTSWMXMSRWXLEXQMKLXVIWYPXMRSJJIVWSJMRHYGIQIRXWJSVI\EQTPIEWE
VIWYPXSJXLIMVIQTPS]QIRXWMXYEXMSRERH

H  'SRWMHIV [LIXLIV MX MW ETTVSTVMEXI XS MRJSVQ LMKLIV PIZIPW SJ QEREKIQIRX SV XLSWI
GLEVKIH [MXL KSZIVRERGI SJ XLI IQTPS]MRK SVKERM^EXMSR [LIVI MQQIHMEXI SV GPSWIJEQMP]
QIQFIVWEVIIQTPS]IHF]GSQTIXMXSVWSVTSXIRXMEPWYTTPMIVWSJXLEXSVKERM^EXMSR


3**)6-2+-2(9')1)287
4VSJIWWMSREPEGGSYRXERXWQE]JMRHXLIQWIPZIWMRWMXYEXMSRW[LIVIXLI]EVII\TIGXIHXS
SV EVI YRHIV SXLIV TVIWWYVI XS SJJIV MRHYGIQIRXW XS WYFSVHMREXI XLI NYHKQIRX SJ ERSXLIV
MRHMZMHYEP SV SVKERM^EXMSR MRJPYIRGI E HIGMWMSRQEOMRK TVSGIWW SV SFXEMR GSRJMHIRXMEP
MRJSVQEXMSR

7YGLTVIWWYVIQE]GSQIJVSQ[MXLMRXLIIQTPS]MRKSVKERM^EXMSRJSVI\EQTPIJVSQE
GSPPIEKYI SV WYTIVMSV -X QE] EPWS GSQI JVSQ ER I\XIVREP MRHMZMHYEP SV SVKERM^EXMSR
WYKKIWXMRK EGXMSRW SV FYWMRIWW HIGMWMSRW XLEX [SYPH FI EHZERXEKISYW XS XLI IQTPS]MRK
SVKERM^EXMSRERHF]I\XIRWMSRXLITVSJIWWMSREPEGGSYRXERXGERFIMRJPYIRGIHMQTVSTIVP]
 8LVIEXW XS GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW QE] EVMWI MR XLI JSPPS[MRK
GMVGYQWXERGIW
E %TVSJIWWMSREPEGGSYRXERXI\TIVMIRGIWTVIWWYVIJVSQ[MXLMRXLIIQTPS]MRKSVKERM^EXMSR
XS SJJIV ERMRHYGIQIRX XS WYFSVHMREXI XLI NYHKQIRXSJERSXLIV MRHMZMHYEP SV SVKERM^EXMSR
MRJPYIRGIEHIGMWMSRQEOMRKTVSGIWWSVSFXEMRMRJSVQEXMSRSV

F %XLMVHTEVX]SYXWMHIXLIIQTPS]MRKSVKERM^EXMSREWOWETVSJIWWMSREPEGGSYRXERXJSVER
MRHYGIQIRXXLEXQMKLXMRJPYIRGIJEZSVEFPI FYWMRIWWHIGMWMSRWSVEGXMSRW

4VSJIWWMSREP EGGSYRXERXWWLSYPHRSXSJJIVMRHYGIQIRXWXLEXE VIEWSREFPIERHMRJSVQIH

XLMVH TEVX] LEZMRK ORS[PIHKI SJ EPP VIPIZERX MRJSVQEXMSR [SYPH GSRWMHIV XS LEZI ER
MQTVSTIVMRJPYIRGISRXLITVSJIWWMSREPNYHKQIRXSJXLSWI[MXL[LSQXLIEGGSYRXERXWLEZIE
TVSJIWWMSREPSVFYWMRIWWVIPEXMSRWLMT
;LIVIXLITVIWWYVIXSSJJIVERYRIXLMGEPMRHYGIQIRXGSQIWJVSQ[MXLMRXLIIQTPS]MRK
SVKERM^EXMSRTVSJIWWMSREPEGGSYRXERXWWLSYPHJSPPS[XLITVMRGMTPIWERHKYMHERGIVIKEVHMRK
IXLMGEPGSRJPMGXVIWSPYXMSRWIXSYXMR4EVX%SJXLMW'SHI


 7)'8-32
(-7'037-2+'32*-()28-%0-2*361%8-32

 4VSJIWWMSREP EGGSYRXERXW WLSYPH QEMRXEMR XLI JYRHEQIRXEP TVMRGMTPI SJ

GSRJMHIRXMEPMX] 8LI] WLSYPH RSX HMWGPSWI GSRJMHIRXMEP MRJSVQEXMSR EGUYMVIH MR XLI
GSYVWISJXLIMV[SVOYRPIWWTIVQMXXIHXSHSWSSVEWVIUYMVIHF]PE[SVVIKYPEXMSR
 8LI TSWWIWWMSR SJ GSRJMHIRXMEP MRJSVQEXMSR QE] KMZI VMWI XS WTIGMJMG XLVIEXW XS
GSRJMHIRXMEPMX]MRGIVXEMRGMVGYQWXERGIW*SVI\EQTPIXLITSWWIWWMSRERHRSRHMWGPSWYVISJ
GSRJMHIRXMEP MRJSVQEXMSR QE] XLVIEXIR GSQTPMERGI [MXL XLI JYRHEQIRXEP TVMRGMTPIW [LIR
TVSJIWWMSREPEGGSYRXERXW
E %VIVIUYMVIHF]PE[XSHMWGPSWIMRJSVQEXMSRJSVI\EQTPIMRGSRRIGXMSR[MXLERXMQSRI]
PEYRHIVMRKSVERXMXIVVSVMWXPIKMWPEXMSRSV
F  %VI TIVQMXXIH F] PE[ XS HMWGPSWI MRJSVQEXMSR SV FIPMIZI XLEX GSRJMHIRXMEP MRJSVQEXMSR
WLSYPHFIHMWGPSWIHMRXLI TYFPMGMRXIVIWXJSVI\EQTPI [LIVI XLI IQTPS]MRK SVKERM^EXMSR
LEWGSQQMXXIHSVTVSTSWIWXSGSQQMXEGVMQISVJVEYHYPIRXEGX

;LIVIVIUYMVIHF]PE[XSHMWGPSWIGSRJMHIRXMEPMRJSVQEXMSRJSVI\EQTPIEWEVIWYPXSJ
ERXMQSRI]PEYRHIVMRKSVERXMXIVVSVMWXPIKMWPEXMSRSVMRGSRRIGXMSR[MXLPIKEPTVSGIIHMRKW
MRZSPZMRK IMXLIV XLIQWIPZIW SV XLI IQTPS]MRK SVKERM^EXMSR TVSJIWWMSREP EGGSYRXERXW MR
FYWMRIWW WLSYPH EP[E]W HMWGPSWI XLEX MRJSVQEXMSR MR GSQTPMERGI [MXL VIPIZERX PIKEP
VIUYMVIQIRXW 8LI] WLSYPH EPWS GSRWMHIV SFXEMRMRK PIKEP EHZMGI ERHSV GSRWYPXMRK XLIMV
TVSJIWWMSREPFSH]FIJSVIQEOMRKER]HMWGPSWYVI
 7SQI GMVGYQWXERGIW TVSJIWWMSREP EGGSYRXERXW QE] GSRWMHIV HMWGPSWMRK MRJSVQEXMSR
SYXWMHI XLI IQTPS]MRK SVKERM^EXMSR [LIR RSX SFPMKEXIH XS HS WS F] PE[ SV VIKYPEXMSR
FIGEYWIXLI]FIPMIZIMX[SYPHFIMRXLITYFPMGMRXIVIWX;LIRGSRWMHIVMRKWYGLHMWGPSWYVI
TVSJIWWMSREP EGGSYRXERXW WLSYPH [LIVI ETTVSTVMEXI JSPPS[ XLI MRXIVREP TVSGIHYVIW SJ XLI
IQTPS]MRK SVKERM^EXMSR MR ER EXXIQTX XS VIGXMJ] XLI WMXYEXMSR -J XLI QEXXIV GERRSX FI
VIWSPZIH [MXLMR XLI IQTPS]MRK SVKERM^EXMSR TVSJIWWMSREP EGGSYRXERXW MR FYWMRIWW WLSYPH
GSRWMHIVQEXXIVWMRGPYHMRKXLIJSPPS[MRK
E 0IKEPGSRWXVEMRXWERHSFPMKEXMSRW

F ;LIXLIVQIQFIVWSJXLITYFPMGEVIPMOIP]XSFIEHZIVWIP]EJJIGXIH
G 8LIKVEZMX]SJXLIQEXXIVJSVI\EQTPIXLIWM^ISJXLIEQSYRXWMRZSPZIHERHXLII\XIRXSJ
PMOIP]JMRERGMEPHEQEKI
H 8LITSWWMFMPMX]SVPMOIPMLSSHSJVITIXMXMSR
I 8LIVIPMEFMPMX]ERHUYEPMX]SJXLIMRJSVQEXMSREZEMPEFPI
(f) The reasons for the employing organization’s unwillingness to disclose matters to the
VIPIZERXEYXLSVMX]
-RHIGMHMRK[LIXLIVXSHMWGPSWIGSRJMHIRXMEPMRJSVQEXMSRXLI]WLSYPHEPWSGSRWMHIVXLI
JSPPS[MRKTSMRXW


E  ;LIR XLI IQTPS]IV KMZIW EYXLSVM^EXMSR XS HMWGPSWI MRJSVQEXMSR [LIXLIV SV RSX XLI
MRXIVIWXWSJEPPXLITEVXMIWMRGPYHMRKXLMVHTEVXMIW[LSWIMRXIVIWXWQMKLXFIEJJIGXIHGSYPHFI
LEVQIH

F ;LIXLIVSVRSXEPPXLIVIPIZERXMRJSVQEXMSRMWORS[RERHWYFWXERXMEXIHXSXLII\XIRXMXMW
TVEGXMGEFPI [LIR XLI WMXYEXMSR MRZSPZIW YRWYFWXERXMEXIH JEGXW MRGSQTPIXI MRJSVQEXMSR SV
YRWYFWXERXMEXIHGSRGPYWMSRWTVSJIWWMSREPNYHKQIRXWLSYPHFIYWIHMRHIXIVQMRMRKXLIX]TI
SJHMWGPSWYVIXSFIQEHIMJER]
G 8LIX]TISJGSQQYRMGEXMSRXLEXMWI\TIGXIHERHXS[LSQMXMWEHHVIWWIHMRTEVXMGYPEV
TVSJIWWMSREPEGGSYRXERXWWLSYPHFIWEXMWJMIHXLEXXLITEVXMIWXS[LSQXLIGSQQYRMGEXMSRMW
EHHVIWWIHEVIETTVSTVMEXIVIGMTMIRXWERH
H  8LI PIKEP SV VIKYPEXSV] SFPMKEXMSRW ERH XLI TSWWMFPI MQTPMGEXMSRW SJ HMWGPSWYVI JSV XLI
TVSJIWWMSREPEGGSYRXERX

&IJSVIQEOMRKWYGLHMWGPSWYVITVSJIWWMSREPEGGSYRXERXWWLSYPHSFXEMRPIKEPEHZMGIEW
XSXLIMVHYXMIWERHSFPMKEXMSRWMRXLIGSRXI\XSJXLIMVTVSJIWWMSR

EPERHFYWMRIWWVIPEXMSRWLMTW