MIA by laws(1)

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Unformatted text preview: serves as a liquidator, provisional liquidator, receiver, receiver and manager, special administrator or persons of like description, if appointed as such after 1 July 2004. 143 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] APPENDICES APPENDIX IV Transitional Provision 290-04 Fees – Relative Size Paragraph 290.206A(1) provides that in all cases involving listed entities or public interest entities, if the total fees (arising from assurance and non-assurance services) generated by one assurance client or client group exceed 15% of the firm’s total fees in each year over two consecutive financial periods, financial dependency exists. A selfinterest threat to independence is therefore created. In such event, the only course of action is to refuse to perform or withdraw from the assurance engagement. The Council appreciates that some member firms may have initial difficulty in complying with paragraph 290.206A(1). The Council has concluded that, subject to approval by the Securities Commission and/or the stock exchange or other relevant authority, it would be appropriate to allow a transitional period of two (2) years for paragraph 290.206A(1), for those member firms which provide assurance services to listed entities or public interest entities. Consequently, these member firms may continue with the assurance engagement for the assurance client for two (2) additional years from 1 July 2004 for assurance engagements for which the financial period commences on or after this date notwithstanding the financial dependency on that client, subject to approval from the Securities Commission and/or the stock exchange or other relevant authority. These member firms should nevertheless, if they wish to continue with the assurance engagement, take steps to reduce or eliminate the financial dependency on that assurance client. In any event, the additional requirements in section 290 to apply equivalent safeguards in order to reduce any threats to an acceptable level should be followed. Transitional Provision 290-05 Provision of Internal Audit Services to Financial Statement Audit Client This transitional provision is in respect of section 290.186A which has been amended from what was originally issued on 1 July 2004 and reissued on 1 January 2007. The Council has concluded that it is appropriate to allow a transitional period of one year, during which existing contracts to provide internal audit services to financial statement audit clients may be completed if additional safeguards are put in place to reduce any threats to independence to an insignificant level. This transitional period commences with effect from 1 January 2007 for assurance engagements for which the financial period commences on or after 1 January 2007. 144 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] APPENDICES APPENDIX IV Section 290 Interpretation...
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This document was uploaded on 09/23/2013.

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