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To provide reasonable assurance of compliance with

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independence requirements, the firm’s System of Quality

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Control around independence works in preventing and

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detecting independence violations. The effectiveness of our

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systems relies in large part on receiving quality data from

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the audit client. We should discuss with our audit clients

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the importance of timely informing the audit engagement team

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of upcoming transactions, acquisitions, and other activity

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that may result in new affiliates or affiliated persons, such

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as persons in financial reporting oversight roles. Client

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management may also inform non-audit engagement teams

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performing services for the audit client or its affiliates

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about such activities or transactions. It’s important

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they’re aware of their shared responsibility to also notify

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the audit team. When made aware of upcoming transactions,

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audit teams should submit  an inquiry in  the Professional

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Practice Inquiry Management application (PPIM) for assistance

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with determining whether engagement reevaluation is required

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and with navigating the broad implications of such events,

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including the independence clearance process. Compliance

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with our System of Quality Control must not only be top of

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mind when thinking through new affiliates or affiliated

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persons; we share in the responsibility to think about

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independence as soon as we’re made aware of opportunities

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with new audit clients, before they have been “won”. When

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potential opportunities arise, new Audit Client Pursuits

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should be entered into KPMG Engage and submitted via PPIM,

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found on Launchpad under the Client Relationship Management

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section. A Professional Practice Support team member will be

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assigned to assist you with onboarding steps required for

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new audit clients and engagements.