Of a member of the institute 123 by laws on

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Unformatted text preview: the Institute at all times. Inserted 31 July 2008; With immediate effect. 125 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART II: BY-LAWS ON PROFESSIONAL CONDUCT AND PRACTICE Section 520 Death or Incapacity of a Sole Practitioner Death or Incapacity of a Sole Practitioner 520.1 Unless appropriate arrangements have been made, the continuing incapacity or death of a sole practitioner will cause considerable difficulty and inconvenience to clients. Furthermore, the resultant interruption of services will diminish the value of the practice and may even lead to its disintegration. 520.2 It is therefore important for a sole practitioner, to protect both his or her own interests as well as the interests of the clients, to enter into such arrangements with another member or member firm as will enable the practice to be carried on with a minimum of dislocation in the event of incapacity or death. 520.3 Such arrangements should be made within two (2) years from the date the sole proprietorship was set up and should provide, so far as possible, for the practice to be continued as a going concern until such time as the sole practitioner recovers or the representatives of his or her estate decide to dispose of the practice. 520.4 (1) A member in public practice who is a sole practitioner is required to enter into an arrangement to enable the practice to continue with minimum disruption in the event of death or incapacity, in either of the following ways: (a) by entering into an agreement with another sole practitioner or with a member firm; or (b) by satisfying the Council that other adequate provision has been made. (2) 520.5 Members in public practice shall ensure that their executors and family are aware, in the event of death or incapacity, of the arrangements made for the management of the practice. (1) An arrangement, reciprocal or otherwise, between two sole practitioners may be appropriate. Alternatively, in many cases it will be advantageous for a sole practitioner to enter into an arrangement with a member firm. (2) Although such an arrangement may take the form of an agreement to manage, an arrangement for the sale of the practice on a predetermination basis may in many cases be more satisfactory. 126 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART II: BY-LAWS ON PROFESSIONAL CONDUCT AND PRACTICE (3) When such arrangements are under consideration, the compatibility of the respective practices, especially in relation to audit procedures, fees and the general state of the work in both offices, should be borne in mind. 127 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART II: BY-LAWS ON PROFESSIONAL CONDUCT AND PRACTICE Section 530 Client Documents and Exercise of Lien Release of Client Documents or Information 530.1 (1) Where the...
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This document was uploaded on 09/23/2013.

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