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ALEX: Welcome back. For our final segment today, a

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reminder that we also have to consider independence when

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thinking about employment, business and financial

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relationships we may have with audit clients and their

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affiliates. For more, we go to our correspondent, Bruce.

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BRUCE: Thanks, Alex. The firm has to demonstrate that we’re

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independent in fact and in appearance. Past, current and

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future relationships with audit clients or their affiliates

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can all have an impact.

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ALEX: Bruce, I can’t help but notice that you’re at the gym.

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What’s going on?

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BRUCE: Oh, this? Alex, didn’t you know that I work as

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a Pilates instructor on the side?

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ALEX: I did not.

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BRUCE: It’s true. But don’t worry. I completed KPMG’s

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outside employment process and obtained approval before I started.

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This gym doesn’t have any relationship with any of

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our audit clients. And that’s important. Outside employment

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with an audit client or their affiliate would be an

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independence violation even if I wasn’t serving on the

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audit engagement.

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ALEX: Bruce, what if you had a speaking engagement with an

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audit client or their affiliate? Would that be permitted?

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BRUCE: Good question. Speaking engagements must be submitted

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through the Business Relationship Clearance Tool and

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approved beforehand.

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ALEX: So always stop and think about independence and be

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mindful of these relationships and activities you may have

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or are planning with audit clients or their affiliates.

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BRUCE: That’s right, Alex.

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Now if you’ll excuse me, I need to warm up.

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ALEX: Thanks, Bruce.

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And that’s it for this edition of The Independence Report. 

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Remember, our show is over, but your obligations are not.

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Independence is an ongoing responsibility for everyone in

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the firm. Thanks for joining us.

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