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)