Revised Code of Ethics in the Phils - 2010

Revised Code of Ethics in the Phils 2010

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Unformatted text preview: terest entity, an individual shall not be a key audit partner for more than seven years, unless a shorter number of years in service is required by a regulatory body.” 10. Sec. 290.154 Regular independent internal or external quality reviews of the engagement a. Sec. 290.154 of the IESBA Code has the following wordings: “If the individual has served the audit client as a key audit partner for five years or less when the client becomes a public interest entity, the number of years the individual may continue to serve the client in that capacity before rotating off the engagement is seven years less the number of years already served. If the individual has served the audit client as a key audit partner for six or more years when the client becomes a public interest entity, the partner may continue to serve in that capacity for a maximum of two additional years before rotating off the engagement.” The PICPA National Board previously approved the following provisions recommended by the Ethics Committee (FY 2010-2011): “Sec. 290.154 engagement Regular independent internal or external quality reviews of the “When an audit client becomes a PIE, the length of time the individual has served the audit client as a key audit partner before the client becomes a PIE shall be taken into account in determining the timing of the rotation. If the individual has served the audit client as a key audit partner for five (5) years when the client becomes a PIE, the number of years the individual may continue to serve the client in that capacity before rotating off the engagement is three (3) years less the number of years already served. If the individual has served the audit client as a key audit partner for three (3) or more years when the client 7 becomes a PIE, the partner may continue to serve in that capacity for a maximum of two (2) years before rotating off the engagement.” However, the Ethics Committee (FY 2012-2013) proposes the following provisions: “Sec. 290.154 Regular independent internal or external quality reviews of the engagement “When an audit client becomes a PIE, t...
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This document was uploaded on 04/03/2014.

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