Independence Policy - HARER AND JONES INDEPENDENCE POLICIES AND PROCEDURES INDEPENDENCE Purpose The purpose of Harer and Jones independence policies and

Independence Policy - HARER AND JONES INDEPENDENCE POLICIES...

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HARER AND JONES INDEPENDENCE POLICIES AND PROCEDURES INDEPENDENCE Purpose The purpose of Harer and Jones’ independence policies and procedures is to ensure that the company’s independence is maintained, both in appearance and fact so that the opinions made by our auditors would always be credible and reliable for the consummation of the public. These policies are guaranteed in compliance with the Republic Act 9298 also known as the Accountancy Act of 2004, Code of Ethics for Professional Accountants of the Philippines, Generally Accepted Auditing Standards and Philippine Standard on Auditing. Objective The objective of this section is to assist the firm and members of assurance teams in: (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 applying appropriate safeguards to eliminate or reduce the threats to an acceptable level. In situations when no safeguards are available to reduce the threat to an acceptable level, the only possible actions are to eliminate the activities or interest creating the threat, or to refuse to accept or continue the assurance engagement. (COE) EYG INDEPENDENCE POLICY The following sets forth the key provisions of the EYG independence policy, including the incremental subsections that highlight additional independence requirements of the US Securities and Exchange Commission independence regulations 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 opinion without being affected by influences that compromise professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional skepticism; and
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(b) Independence in appearance - the avoidance of facts and circumstances that are so significant a reasonable and informed third party, having knowledge of all relevant information, including any safeguards applied, would reasonably conclude a firm's or a member of the assurance team’s integrity, objectivity or professional skepticism had been compromised. (Code of Ethics for Professional Accountants of the Philippines) (c) Each professional should be responsible for maintaining his/her personal independence. Policy 2: The members of the assurance team, the firm and network firms are required to be independent of the audit client; a The firm should not have a material direct or indirect financial interest; b It is necessary to evaluate the independence of members of the assurance team by investigating and gathering information about their immediate and close family.
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