Document ID: chunk:federal_register_of_legislation:F2020L00885:body:0:p5
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more understandable. However, the amendments made by this Standard do not include that underlining, striking out or other typographical material. Amended paragraphs are shown with deleted text struck through and new text underlined. Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

Amendments to ASQC 1

8.                   Paragraph 21 is amended as follows:

…

(b)  Identify and evaluate circumstances and relationships that create threats to independence, evaluate whether the identified threats are at an acceptable level, and if not address them by and to take appropriate action to eliminating the circumstances that create the threats, applying safeguards to reduce threats to an acceptable level, or withdrawing from the engagement, eliminate those threats or reduce them to an acceptable level by applying safeguards, or, if considered appropriate, to withdraw from the engagement, where withdrawal is possible under applicable law or regulation.

9.                   New paragraph Aus 21.1 is inserted after paragraph 21 as follows:

    Where multiple threats to independence are identified, which individually might not be significant, the significance of those threats in aggregate and the safeguards applied or in place to eliminate some or all of the threats or reduce them to an acceptable level in aggregate, shall be evaluated.

10.               Paragraph 22 is amended as follows:

…

       (b) Personnel to promptly notify the firm of circumstances and relationships that create a threats to independence so that appropriate action can be taken;  and

       …

11.               Paragraph 25 is amended as follows:

…

       (a)      Setting out criteria for determining the need for safeguards to reduce the familiarity threat to eliminate the circumstances that create a threat of long association with an entity to an acceptable level when using the same senior personnel on an assurance engagement over a long period of time or criteria for applying safeguards to reduce the threat; and

    …

12.               Paragraph A11 is amended as follows:

Written confirmation may be in paper or electronic form. By obtaining confirmation and taking appropriate action on information indicating a breach non-compliance, the firm demonstrates the importance that it attaches to independence and makes the issue current for, and visible to, its personnel.

13.               The title of paragraph A12 is amended as follows:

Long Association with an Entity Familiarity Threat (Ref: Para. 25)

14.               Paragraph Aus A12.1 is amended as follows:

A familiarity threat may be created as a result of an individual's long association with:

         * The entity and its operations;

         * The entity's senior management; or

         * The underlying subject matter and subject matter information of the assurance engagement.

by using the same senior personnel on an assurance engagement over a long period of time.

15.