Be reduced to an acceptable level by the application

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Unformatted text preview: ficant influence over the subject matter information of the assurance engagement, this may create self-interest, self-review and familiarity threats. For example, such threats would be created if a decision made or work performed by the individual in the prior period, while employed by the assurance client, is to be evaluated in the current period as part of the current assurance engagement. The significance of the threats will depend upon factors such as: (a) (b) The length of time that has passed since the individual left the assurance client; and (c) (2) The position the individual held with the assurance client; The role the individual plays on the assurance team. The significance of the threat should be evaluated and, if the threat is other than clearly insignificant, safeguards should be considered and 72 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS applied as necessary to reduce the threat to an acceptable level. Such safeguards might include: (a) Involving an additional professional accountant to review the work done by the individual as part of the assurance team or otherwise advise as necessary; or (b) Discussing the issue with those charged with governance, such as the audit committee. Serving as an Officer or Director on the Board of Assurance Clients 290.149 If a partner or employee of the firm serves as an officer or as a director on the board of an assurance client or as a liquidator, provisional liquidator, receiver, receiver and manager, special administrator or persons of like description the self-review and self-interest threats created would be so significant no safeguard could reduce the threats to an acceptable level. In the case of a financial statement audit engagement, if a partner or employee of a network firm were to serve as an officer or as a director on the board of the audit client the threats created would be so significant no safeguard could reduce the threats to an acceptable level. Consequently, if such an individual were to accept such a position the only course of action is to refuse to perform, or to withdraw from the assurance engagement. 290.150 [This section is intentionally kept blank] 290.151 [This section is intentionally kept blank] 290.152 [This section is intentionally kept blank] Long Association of Senior Personnel With Assurance Clients General Provisions 290.153 (1) Using the same senior personnel on an assurance engagement over a long period of time may create a familiarity threat. The significance of the threat will depend upon factors such as: (a) The length of time that the individual has been a member of the assurance team; (b) The role of the individual on the assurance team; 73 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (c) (d) (2) The structure of the firm; and The...
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