Review the scenarios involving maintaining your client’s Sentinel family tree listed below and answer Yes or No to indicate if the action is correct or not.
Select the circle corresponding to each statement. You must answer all questions to proceed to the next screen.
Optional learning:
To learn more about the Sentinel family tree procedures, click here.
", "options": [{ "id": "1", "optImage": "", "optImage1": "", "optText": "The audit engagement team has been informed that the audit client will acquire another entity. The team performed a review of the history of services provided to, and relationships with, the entity prior to the effective date of the transaction.", "radio_text0": "", "radio_text1": "", "correctAns": "1", "correct": "
That’s correct.
Performing a review of Sentinel service history and existing relationships prior to the effective date of the transaction allows the team to address any prohibited services or relationships that may be present and is essential when applying the SEC’s transition framework, if applicable. Additionally, Audit Committee approval must be obtained for any ongoing permissible services, including satisfaction of the requirements of PCAOB Rules 3524 and 3525 (as applicable). Upon transaction closing, the Sentinel Lead Partner or delegate updates the Sentinel family tree for the acquired entity.
That’s incorrect.
Performing a review of Sentinel service history and existing relationships prior to the effective date of the transaction allows the team to address any prohibited services or relationships that may be present and is essential when applying the SEC’s transition framework, if applicable. Additionally, Audit Committee approval must be obtained for any ongoing permissible services, including satisfaction of the requirements of PCAOB Rules 3524 and 3525 (as applicable). Upon transaction closing, the Sentinel Lead Partner or delegate updates the Sentinel family tree for the acquired entity.