Insurance 1 january 2007 520 death or incapacity of a

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Unformatted text preview: ns why the professional accountant in public practice should not accept the engagement; and if permission is obtained from the client, disclose all such information or if permission is not so obtained, disclose that fact, to the professional accountant in public practice. If the professional accountant in public practice does not receive a reply to the request for information from the existing professional accountant after the expiry of 14 working days of such request, the professional accountant in public practice should: (a) send a reminder to the existing professional accountant by registered post or despatched by hand or by similar means; and (b) if no reply to such reminder is received within 14 working days after sending the reminder, endeavour to communicate with the existing professional accountant by some other means or try to obtain information about any possible threats by other means such as through inquiries of third parties or background investigations on senior management or those charged with governance of the client. 3. If the requested information is not obtained or if the professional accountant in public practice receives a reply from the existing professional accountant that client permission to disclose information has been refused, the professional accountant in public practice should consider whether, taking all the circumstances into account, it is appropriate to accept the engagement. 4. Where a decision is made to accept the engagement, the professional accountant in public practice should inform the existing professional accountant of this decision in writing and send the same to the existing professional accountant by registered post or despatched by hand or by similar means. 139 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] APPENDICES APPENDIX III Additional Guidance on Clients’ Monies for Section 270 When dealing with clients’ monies, professional accountants in public practice are required to comply with the following: 1. Clients' monies should be paid without delay into a separate bank account which may be either a general account or an account in the name of a specific client but which should in all cases include in its title the word 'client'. Any such account is referred to as 'a client account'. 2. Where a professional accountant in public practice or the firm receives a cheque or draft which includes both clients' monies and other monies, the same is to be credited into a client account. Once the monies have been received into such client account, withdrawals may be made from that account in respect of such part of the sum received as can properly be transferred to the office account of the firm in accordance with the principles set out below. 3. Save as referred to in paragraph 2, no monies other than clients' monies should be paid into a client account. 4. Drawings on a client account should only be made: (a) to meet payments due fr...
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