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Unformatted text preview: gagement teams with separate reporting
lines for the provision of non-assurance services to an assurance client. (k) Policies and procedures to prohibit individuals who are not members of an
engagement team from inappropriately influencing the outcome of the
engagement. (l) Timely communication of a firm’s policies and procedures, including any
changes to them, to all partners and professional staff, and appropriate
training and education on such policies and procedures. (m) Designating a member of senior management to be responsible for
overseeing the adequate functioning of the firm’s quality control system.
(n) Advising partners and professional staff of those assurance clients and
related entities from which they must be independent. 29 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants
[Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (o) A disciplinary mechanism to promote compliance with policies
procedures. and (p) Published policies and procedures to encourage and empower staff to
communicate to senior levels within the firm any issue relating to
compliance with the fundamental principles that concerns them. 200.13 Engagement-specific safeguards in the work environment may include:
(a) Involving an additional professional accountant to review the work done or
otherwise advise as necessary. (b) Consulting an independent third party, such as a committee of independent
directors, a professional regulatory body or another professional
accountant. (c) Discussing ethical issues with those charged with governance of the client. (d) Disclosing to those charged with governance of the client the nature of
services provided and extent of fees charged. (e) Involving another firm to perform or re-perform part of the engagement. (f) Rotating senior assurance team personnel. 200.14 Depending on the nature of the engagement, a professional accountant in public
practice may also be able to rely on safeguards that the client has implemented.
However it is not possible to rely solely on such safeguards to reduce threats to
an acceptable level. 200.15 Safeguards within the client’s systems and procedures may include:
(a) When a client appoints a firm in public practice to perform an engagement,
persons other than management ratify or approve the appointment. (b) The client has competent employees with experience and seniority to make
managerial decisions. (c) The client has implemented internal procedures that ensure objective
choices in commissioning non-assurance engagements. (d) The client has a corporate governance structure that provides appropriate
oversight and communications regarding the firm’s services. 30 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 210 Professional Appointment Client Acceptance
210.1 Before accepting a new client relationship, a professional accountant...
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This document was uploaded on 09/23/2013.
- Fall '13