Due to the standard nature of trust account engagements, there are several common threats to independence that you may face, along with a standard list of common safeguards which you may implement to mitigate these threats.
Accordingly, the MyWorkpapers trust account programs provide you with a list of common threats and safeguards to independence and allow you to quickly provide these as responses through our Response Library.
To complete the B2 Independence workpaper and use our Response Library, simply complete the following procedures:
- Access the B2 Independence workpaper from the Working Paper Index;
- If a threat to any of the independence categories exists, select Yes from the dropdown menu provided;
- Once selected, click on the Select Threat dropdown menu and select one of the standard threats from the Responses Library. Alternatively, click Blank Threat to create your own;
Note: If required, you can edit the threat inserted by clicking on the text area and typing in your required edits.
- Once you have finalised the threat, click on the Select Safeguard dropdown menu and either select one of the standard safeguards from the Response Library or add in a blank threat;
Note: Multiple safeguards can be entered to mitigate a threat and as with the threat inserted, manually edit the safeguard as required.
- Complete this for all identified threats and provide an overall conclusion on the workpaper.
Hint: You further save time on every engagement by creating your own firm-based template and providing standard responses for independence for use on all of your trust account engagements.