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HARER AND JONESINDEPENDENCE POLICIES AND PROCEDURESINDEPENDENCEPurposeThe purpose of Harer and Jones’ independence policies and procedures is toensure that the company’s independence is maintained, both in appearance andfact so that the opinions made by our auditors would always be credible andreliable for the consummation of the public.These policies are guaranteed in compliance with the Republic Act 9298 alsoknown as the Accountancy Act of 2004, Code of Ethics for ProfessionalAccountants of the Philippines, Generally Accepted Auditing Standards andPhilippine Standard on Auditing.ObjectiveThe objective of this section is to assist the firm and members of assurance teamsin:(a) Identifying threats to independence;(b) Evaluating whether these threats are clearly insignificant; and(c) In cases when the threats are not clearly insignificant, identifying and applyingappropriate safeguards to eliminate or reduce the threats to an acceptable level. Insituations when no safeguards are available to reduce the threat to an acceptablelevel, the only possible actions are to eliminate the activities or interest creatingthe threat, or to refuse to accept or continue the assurance engagement. (COE)EYG INDEPENDENCE POLICYThe following sets forth the key provisions of the EYG independence policy,including the incremental subsections that highlight additional independencerequirements of the US Securities and Exchange Commission independenceregulations and Public Company Accounting Oversight Board (PCAOB) rules:Policy 1:The auditor must maintain independence in appearance and in fact;(a) Independence of mind - the state of mind that permits the provision of an opinionwithout being affected by influences that compromise professional judgment, allowing anindividual to act with integrity, and exercise objectivity and professional skepticism; and
(b) Independence in appearance - the avoidance of facts and circumstances that are sosignificant a reasonable and informed third party, having knowledge of all relevantinformation, including any safeguards applied, would reasonably conclude a firm's or amember of the assurance team’s integrity, objectivity or professional skepticism had beencompromised. (Code of Ethics for Professional Accountants of the Philippines)(c) Each professional should be responsible for maintaining his/her personalindependence.Policy 2:The members of the assurance team, the firm and network firms are required to beindependent of the audit client;aThe firm should not have a material direct or indirect financial interest;bIt is necessary to evaluate the independence of members of the assurance team byinvestigating and gathering information about their immediate and close family.
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Accountant, Certified Public Accountant, Chartered Accountant