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Unformatted text preview: ould not ordinarily volunteer information about the client’s affairs.
Circumstances where it may be appropriate to disclose confidential information
are set out in Section 140 of Part A.
210.14 If identified threats are other than clearly insignificant, safeguards should be
considered and applied as necessary to eliminate them or reduce them to an
210.15 Such safeguards may include:
(a) Discussing the client’s affairs fully and freely with the existing accountant; (b) Asking the existing accountant to provide known information on any facts
or circumstances, that, in the existing accountant’s opinion, the proposed
accountant should be aware of before deciding whether to accept the
engagement; (c) When replying to requests to submit tenders, stating in the tender that,
before accepting the engagement, contact with the existing accountant will
be requested so that inquiries may be made as to whether there are any 33 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants
[Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS professional or other reasons why the appointment should not be
accepted. 210.16 A professional accountant in public practice will ordinarily need to obtain the
client’s permission, preferably in writing, to initiate discussion with an existing
(a) permission is refused, the professional accountant in public practice should
decline the appointment; (b) permission is obtained, the existing accountant should comply with
relevant legal and other regulations governing such requests. Where the
existing accountant provides information, it should be provided honestly
and unambiguously and within reasonable time. If the proposed
accountant is unable to communicate with the existing accountant, the
proposed accountant should 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. Please refer to the procedures for seeking professional clearance as set out in
Appendix II to the By-Laws. 210.17 Where the threats cannot be eliminated or reduced to an acceptable level
through the application of safeguards, a professional accountant in public
practice should, unless there is satisfaction as to necessary facts by other
means, decline the engagement.
210.18 A professional accountant in public practice may be asked to undertake work
that is complementary or additional to the work of the existing accountant. Such
circumstances may give rise to potential threats to professional competence and
due care resulting from, for example, a lack of or incomplete information.
Safeguards against such threats include notifying the existing accountant of the
proposed work, which would give the existing accountant the opportunity to
provide any relevant information needed for the proper conduct of the work. 34 By-Laws (On Profes...
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This document was uploaded on 09/23/2013.
- Fall '13