Unless the professional accountant in public practice

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Unformatted text preview: ting, there may be potential threats to compliance with the fundamental principles. For example, a self-interest threat to compliance with the principle of professional behaviour is created if services, achievements or products are marketed in a way that is inconsistent with that principle. 250.2 A professional accountant in public practice should not bring the profession into disrepute when advertising or marketing public practice services. The professional accountant in public practice should be honest and truthful and should: (a) Not make exaggerated claims for services offered, qualifications possessed or experience gained; (b) Not make disparaging references to unsubstantiated comparisons to the work of another. 250.3 If the professional accountant in public practice is in doubt whether a proposed form of advertising or marketing is appropriate, the professional accountant in public practice should seek guidance from the Institute. 250.4 If the professional accountant in public practice is in doubt whether a proposed form of advertising or marketing is appropriate, the professional accountant in public practice should seek guidance from the Institute. Tenders 250.5 A public advertisement or an unsolicited request to make a submission or submit a tender for professional services may give rise to potential threats to compliance with the fundamental principles. For example, a self interest threat to professional competence and due care is created if the fee quoted is so low that it may be difficult to perform the engagement in accordance with applicable technical and professional standards for that fee. 250.6 A professional accountant in public practice should not respond to advertisements to tender for professional work unless the professional 41 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS accountant in public practice has established safeguards to eliminate the threats or reduce them to an acceptable level. Such safeguards include: (a) Having sufficiently qualified and skilled staff to undertake the engagement. (b) Disclosing the basis on which fees are charged and which services are covered by the quoted fee. (c) If the appointment may result in the replacement of another professional accountant in public practice, state in the submission or tender that before acceptance, the opportunity to contact the other professional accountant in public practice is required so that inquiries may be made as to whether there are professional reasons why the appointment should not be accepted, and if the submission or tender is successful, contact the existing accountant in accordance with the applicable provisions in section 210. 42 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 260 Gifts and Hospitality Gifts and Hospitality 2...
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