May potentially be threatened by a broad range of

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Unformatted text preview: oncern about the possibility of losing a client. (e) Potential employment with a client. (f) Contingent fees relating to an assurance engagement. (g) 200.5 Undue dependence on total fees from a client. A loan to or from an assurance client or any of its directors or officers. Examples of circumstances that may create self-review threats include, but are not limited to: (a) (b) Reporting on the operation of financial systems after being involved in their design or implementation. (c) Having prepared the original data used to generate records that are the subject matter of the engagement. (d) A member of the assurance team being, or having recently been, a director or officer of that client. (e) A member of the assurance team being, or having recently been, employed by the client in a position to exert direct and significant influence over the subject matter of the engagement. (f) 200.6 The discovery of a significant error during a re-evaluation of the work of the professional accountant in public practice. Performing a service for a client that directly affects the subject matter of the assurance engagement. Examples of circumstances that may create advocacy threats include, but are not limited to: (a) (b) 200.7 Promoting shares in a listed entity when that entity is a financial statement audit client. Acting as an advocate on behalf of an assurance client in litigation or disputes with third parties. Examples of circumstances that may create familiarity threats include, but are not limited to: (a) A member of the engagement team having a close or immediate family relationship with a director or officer of the client. (b) A member of the engagement team having a close or immediate family relationship with an employee of the client who is in a position to exert direct and significant influence over the subject matter of the engagement. 27 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) Accepting gifts or preferential treatment from a client, unless the value is clearly insignificant. (e) 200.8 A former partner of the firm being a director or officer of the client or an employee in a position to exert direct and significant influence over the subject matter of the engagement. Long association of senior personnel with the assurance client. Examples of circumstances that may create intimidation threats include, but are not limited to: (a) (b) Being threatened with litigation. (c) Being pressured to reduce inappropriately the extent of work performed in order to reduce fees. (d) 200.9 Being threatened with dismissal or replacement in relation to a client engagement. Being threatened with non-payment of outstanding fees. A professional accountant in public practice may also find that specific circumstances give rise to unique threats to compliance with one or more of the fundamental principles. Such unique threats obviously cannot be categ...
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