24. Members in Business (MIB)
Integrity and Objectivity: Obligation of a Member to His or Her Employer's External Accountant
- MIBs must be candid and truthful with their employers' external auditor
MC Tips
1. No compliance threat arises for a member in business who works for an employer for a long time. - But this could be an issue for MIPPs
Threats
6 of the 7 threats that apply to MIPPS also apply to MIBs The threat that doesn't apply is the management participation threat
General Standards (2)
Additionally, MIBBS must: 1. Comply with applicable standards from IRS, SEC, etc. 2. Not falsely imply that F/S were prepared correctly when they were not - regarding independence rules and GAAP
General Standards (1)
Like MIPPs, MIBs must: 1. Act with professional competence 2. Exercise due professional care 3. Adequately plan and supervise professional services 4. Have sufficient relevant data for any conclusions or recommendations
Members in Business: Independence
MIBS do NOT need to worry about independence rules, but must follow the other guidelines set out for MIPPS - like objectivity, integrity, etc.
Integrity and Objectivity: Gifts
Same as MIPPs
Integrity and Objectivity: Preparing and Reporting Information
Same as MIPPs - don't do fraud
Integrity and Objectivity: Subordination of Judgment
Same rules as MIPPs - go to supervisor, then one above, etc. - refer to the video on MIPPs
Safeguards
Similar to MIPPS, safeguards derive from: - the profession, legislation or regulation - the employer (tone at the top)