Revised Code of Ethics in the Phils - 2010

151because the partner meets the definition of the

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Unformatted text preview: senior levelsabove the engagement partner through to theindividual who is the firm’s Senior or ManagingPartner (Chief Executive or equivalent); (ii) Those who provide consultation regarding technicalor industry specific issues, transactions or events forthe engagement; and (iii) Those who provide quality control for theengagement, including those who perform theengagement quality control review for theengagement; and (c) All those within a network firm who can directly influencethe outcome of the review engagement. Special purpose financial statements Financial statements prepared in accordance with a financialreporting framework designed to meet the financial informationneeds of specified users. Those charged with governance The persons with responsibility for overseeing the strategicdirection of the entity and obligations related to theaccountability of the entity. This includes overseeing thefinancial reporting process. IVE DATE Effective Date [This Code is effective on January 1, 2013. The Code issubject to the following transitional provisions: Public Interest Entities 1. Section 290 of the Code contains additional independence provisions whenthe audit or review client is a public interest entity. The additional provisionsthat are applicable because of the new definition of a public interest entity orthe guidance in paragraph 290.26 are effective on January 1, 2012. For partnerrotation requirements, the transitional provisions contained in paragraphs 2and 3 below apply. Partner Rotation 2. For a partner who is subject to the rotation provisions in paragraph 290.151because the partner meets the definition of the new term “key audit partner,” andthe partner is neither the 127 engagement partner nor the individual responsible for theengagement quality control review, the rotation provisions are effective for theaudits or reviews of financial statements for years beginning on or after December15, 2011. For example, in the case of an audit client with a calendar year-end, akey audit partner, who is neither the engagement partner nor the individualresponsible for the engagement quality control review, who had served as a keyaudit partner for seven or more years (that is, the audits of 2003–2010), would berequired to rotate aft...
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This document was uploaded on 04/03/2014.

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