Include considering matters such as the closeness of

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Unformatted text preview: sponsibilities of the assurance team are re-structured so that the professional does not deal with matters that are within the responsibility of the person with whom he or she is related or has a personal relationship, or, if this is not possible, the firm promptly removes the professional from the assurance engagement; and (c) Additional care is given to reviewing the work of the professional. 290.142 When an inadvertent violation of this section relating to family and personal relationships has occurred, the firm should consider whether any safeguards should be applied. Such safeguards might include: (a) Involving an additional professional accountant who did not take part in the assurance engagement to review the work done by the member of the assurance team; or (b) Excluding the individual from any substantive decision-making concerning the assurance engagement. Employment with Assurance Clients 290.143 A firm or a member of the assurance team’s independence may be threatened if a director, an officer or an employee of the assurance client in a position to exert direct and significant influence over the subject matter information of the assurance engagement has been a member of the assurance team or partner of the firm. Such circumstances may create self-interest, familiarity and intimidation threats particularly when significant connections remain between the individual and his or her former firm. Similarly, a member of the assurance team’s independence may be threatened when an individual participates in the assurance engagement knowing, or having reason to believe, that he or she is to, or may, join the assurance client some time in the future. 290.144 (1) If a member of the assurance team, partner or former partner of the firm has joined the assurance client, the significance of the self-interest, familiarity or intimidation threats created will depend upon the following factors: 70 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (a) (b) The amount of any involvement the individual will have with the assurance team. (c) The length of time that has passed since the individual was a member of the assurance team or firm. (d) (2) The position the individual has taken at the assurance client. The former position of the individual within the assurance team or firm. The significance of the threat should be evaluated and, if the threat is other than clearly insignificant, safeguards should be considered and applied as necessary to reduce the threat to an acceptable level. Such safeguards might include: (a) (b) Assigning an assurance team to the subsequent assurance engagement that is of sufficient experience in relation to the individual who has joined the assurance client; (c) Involving an additional professional accountant who was not a member of the assurance team to review the work done or otherwise advise as necessary; or (d) (3)...
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This document was uploaded on 09/23/2013.

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