Professional accountant in public practice should not

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Unformatted text preview: ere found to derive from illegal activities, such as money laundering. As part of client and engagement acceptance procedures for such services, professional accountants in public practice should make appropriate inquiries about the source of such assets and should consider their legal and regulatory obligations. They may also consider seeking legal advice. 44 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS Section 280 Objectivity–All Services Objectivity–All Services 280.1 A professional accountant in public practice should consider when providing any professional service whether there are threats to compliance with the fundamental principle of objectivity resulting from having interests in, or relationships with, a client or directors, officers or employees. For example, a familiarity threat to objectivity may be created from a family or close personal or business relationship. 280.2 A professional accountant in public practice who provides an assurance service is required to be independent of the assurance client. Independence of mind and in appearance is necessary to enable the professional accountant in public practice to express a conclusion, and be seen to express a conclusion, without bias, conflict of interest or undue influence of others. Section 290 provides specific guidance on independence requirements for professional accountants in public practice when performing an assurance engagement. 280.3 The existence of threats to objectivity when providing any professional service will depend upon the particular circumstances of the engagement and the nature of the work that the professional accountant in public practice is performing. 280.4 A professional accountant in public practice should evaluate the significance of identified threats and, if they are other than clearly insignificant, safeguards should be considered and applied as necessary to eliminate them or reduce them to an acceptable level. Such safeguards may include: (a) Withdrawing from the engagement team. (b) Supervisory procedures. (c) Terminating the financial or business relationship giving rise to the threat. (d) Discussing the issue with higher levels of management within the firm. (e) Discussing the issue with those charged with governance of the client. 45 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS Section 290 Independence Independence–Assurance Engagements 290.1 In the case of an assurance engagement it is in the public interest and, therefore, required by the Institute pursuant to these By-Laws, that members of assurance teams, firms and, when applicable, network firms, be independent of assurance clients. 290.2 Assurance engagements are designed to enhance intended users’ degree of confidence about the outcome of the evaluation or measurem...
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This document was uploaded on 09/23/2013.

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