We will withdraw from an engagement or client relationship when required by professional standards, regulatory requirements, when effective safeguards to reduce threats to an acceptable level cannot be applied, or for convenience.

I. Reasons

Circumstances that may lead to withdrawal include:

1. Non-compliance with ethical requirements.
2. Management integrity concerns.
3. Client’s failure to fulfill obligations under the engagement terms.
4. Conflicts of interest that cannot be mitigated.
5. Bilateral decision to discontinue relationship.

Withdrawal from an attest client after both parties signed the engagement letter for an attest engagement but before the date of delivery of an attest report are identified as category I withdrawals.

All other withdrawals are identified as category II withdrawals.

II. Consultation

Consultation is necessary only for category I withdrawals. When required, we consult with legal counsel or professional bodies to understand professional and legal responsibilities such as:

• legal requirements to remain in place that prevent the firm from withdrawing
• obligations to report to regulatory authorities, if applicable.
• obligations to communicate the reasons for withdrawal to the client, those charged with governance, and/or authorities, if applicable.

III. Communication

For category I withdrawals:

• We identify the appropriate level of management and/or those charged with governance to discuss the reasons for withdrawal and communicate why it is considered necessary to withdraw from the engagement.
• Inform the client of the decision to withdraw and the reasons, in accordance with professional standards and legal requirements.
• Provide recommendations for successor accountants, if appropriate.