What it is
The per-engagement independence form covers one client. A firm also needs to show that its independence system works: policies that are current, confirmations from every person, a client list that people can check against, and monitoring that finds breaches.
This checklist is the annual review of that system, matching the relevant ethical requirements component of SQMS No. 1. It covers policies, annual and new-hire confirmations, financial interests, loans, business relationships, nonattest services and the handling of breaches. Not an AICPA product.
When to use it
- Once a year, by a set date, after collecting confirmations.
- When the firm adds attest clients or joins a network.
- To prepare peer review documentation.
What’s inside
- Policies, responsibilities and communication
- Annual, new hire and contractor confirmations
- Client lists, financial interests, loans, relationships and fees
- Nonattest services and fee concentration
- Monitoring, breaches and training
Standard cited
This template follows ET 1.200 / SQMS No. 1. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Do contractors and outsourced reviewers need to confirm independence?
Yes if they work on attest engagements. They are part of the engagement team or the quality review. Collect and keep their confirmations.
What do we do about a breach?
SQMS No. 1 requires firm policies for identifying, communicating, evaluating and reporting breaches of the relevant ethical requirements and responding to their causes and consequences in a timely manner. Document how the breach was resolved and whether it affected issued reports.
Is a client list enough?
A list is the minimum. Staff also need a way to check their financial interests and relationships against it, and the list must be current.
Related templates
- Engagement Independence Confirmation (AICPA Code ET 1.200)
- Nonattest Services Independence Evaluation Checklist
- Peer Review Readiness Checklist
- SQMS No. 1 Annual Evaluation Checklist
Last updated 11/05/2026. All free templates.