To review the work done or otherwise advise as

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Unformatted text preview: of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS (a) The member of the assurance team, an immediate family member of the member of the assurance team, and the firm are not beneficiaries of the trust; (b) The interest held by the trust in the assurance client is not material to the trust; (c) The trust is not able to exercise significant influence over the assurance client; and (d) The member of the assurance team or the firm does not have significant influence over any investment decision involving a financial interest in the assurance client. 290.110 (1) Consideration should be given to whether a self-interest threat may be created by the financial interests of individuals outside of the assurance team and their immediate and close family members. Such individuals would include: (a) (b) Partners and managerial employees who provide non-assurance services to the assurance client; and (c) (2) Partners, and their immediate family members, who are not members of the assurance team; Individuals who have a close personal relationship with a member of the assurance team. Whether the interests held by such individuals may create a self-interest threat will depend upon factors such as: (a) (b) (3) The firm’s organizational, operating and reporting structure; and The nature of the relationship between the individual and the member of the assurance team. The significance of the threat should be evaluated and, if the threat is other than clearly insignificant, safeguards should be considered and applied as necessary to reduce the threat to an acceptable level. Such safeguards might include: (a) Where appropriate, policies to restrict people from holding such interests; (b) Discussing the matter with those charged with governance, such as the audit committee; or (c) Involving an additional professional accountant who did not take part in the assurance engagement to review the work done or otherwise advise as necessary. 61 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS 290.111 An inadvertent violation of this section as it relates to a financial interest in an assurance client would not impair the independence of the firm, the network firm or a member of the assurance team when: (a) The firm, and the network firm, have established policies and procedures that require all professionals to report promptly to the firm any breaches resulting from the purchase, inheritance or other acquisition of a financial interest in the assurance client; (b) The firm, and the network firm, promptly notify the professional that the financial interest should be disposed of; and (c) The disposal occurs at the earliest practical date after identification of the issue, or the professional is removed from the assurance team. 290.112 When an inadvertent violation of this section relating to a financial interest in an assurance client has occurred, the fir...
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