Is the requirement that the client possess suitable skill, knowledge, and/or experience to oversee the nonattest services provided by the member a new provision?
No. Since the mid-1970s, Interpretation No. 101-3 has called for the attest client to undertake certain responsibilities in connection with the delivery of various nonattest services. For example, at various times the rule has called for the client to “be sufficiently knowledgeable,” “sufficiently informed,” and “have an informed judgment on the results of the nonattest service.” These requirements necessitate oversight by an individual with suitable skill, knowledge, and/or experience.
Related Questions
- What are some examples of nonattest services and the level of understanding that the client designee should possess in order to comply with Interpretation No. 101-3?
- How should a member assess whether the individual designated by the client to oversee the nonattest service possesses suitable skill, knowledge, and/or experience?
- Why does the rule require an individual who possesses suitable skill, knowledge, and/or experience to oversee the nonattest services provided by the member?
