02-280-8 Me. Code R. § 8

Current through 2024-51, December 18, 2024

Section 280-8-8 - PRINCIPLE: INDEPENDENCE

Independence, where required by professional standards, is essential to establishing and maintaining the reliability of, and the public's confidence in, the information reported on by the licensee.

A licensee should be independent in fact and appearance. Independence in fact is the absence of a licensee's interest in, relationship with, or services provided to, a person or entity that results in the licensee's loss of objectivity. Independence in appearance is the absence of such interests, relationships, or services which may, to a reasonable person having knowledge of all the facts, appear to result in an unacceptable threat to the licensee's objectivity.

When considering independence issues, it is presumed that the reasonable person would consider, among other factors:

A. A licensee's normal strength of character under the circumstances;

B. Pressures that may be exerted on the licensee by clients and others;

C. The countervailing pressures of legal liability and professional discipline, including loss of reputation and license; and

D. The safeguards established by the profession for the licensee's practice entity, such as peer review and quality control standards.

A licensee in the practice of public accounting should be independent in fact and appearance when engaged to provide services where independence is required by professional standards.

02-280 C.M.R. ch. 8, § 8