ALEX: Welcome back. For our final segment today, a
reminder that we also have to consider independence when
thinking about employment, business and financial
relationships we may have with audit clients and their
affiliates. For more, we go to our correspondent, Bruce.
BRUCE: Thanks, Alex. The firm has to demonstrate that we’re
independent in fact and in appearance. Past, current and
future relationships with audit clients or their affiliates
can all have an impact.
ALEX: Bruce, I can’t help but notice that you’re at the gym.
What’s going on?
BRUCE: Oh, this? Alex, didn’t you know that I work as
a Pilates instructor on the side?
ALEX: I did not.
BRUCE: It’s true. But don’t worry. I completed KPMG’s
outside employment process and obtained approval before I started.
This gym doesn’t have any relationship with any of
our audit clients. And that’s important. Outside employment
with an audit client or their affiliate would be an
independence violation even if I wasn’t serving on the
audit engagement.
ALEX: Bruce, what if you had a speaking engagement with an
audit client or their affiliate? Would that be permitted?
BRUCE: Good question. Speaking engagements must be submitted
through the Business Relationship Clearance Tool and
approved beforehand.
ALEX: So always stop and think about independence and be
mindful of these relationships and activities you may have
or are planning with audit clients or their affiliates.
BRUCE: That’s right, Alex.
Now if you’ll excuse me, I need to warm up.
ALEX: Thanks, Bruce.
And that’s it for this edition of The Independence Report.
Remember, our show is over, but your obligations are not.
Independence is an ongoing responsibility for everyone in
the firm. Thanks for joining us.