Revised Code of Ethics in the Phils - 2010

198 290212 when a firm is asked to act in an advocacy

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Unformatted text preview: e with document management and retrieval. These services may create a self-review or advocacy threat. 290.208 If the firm provides a litigation support service to an audit client and the service involves estimating damages or other amounts that affect the financial statements on which the firm will express an opinion, the valuation service provisions included in paragraphs 290.175 to 290.180 shall be followed. In the case of other litigation support services, the significance of any threat created shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Legal Services 290.209 For the purpose of this section, legal services are defined as any services for which the person providing the services must either be admitted to practice law before the courts of the jurisdiction in which such services are to be provided or have the required legal training to practice law. Such legal services may include, depending on the jurisdiction, a wide and diversified range of areas including both corporate and commercial services to clients, such as contract support, litigation, mergers and acquisition legal advice and support and assistance to clients’ internal legal departments. Providing legal services to an entity that is an audit client may create both self-review and advocacy threats. 290.210 Legal services that support an audit client in executing a transaction (for example, contract support, legal advice, legal due diligence and restructuring) may create self-review threats. The existence and significance of any threat will depend on factors such as: • The nature of the service; • Whether the service is provided by a member of the audit team; and • The materiality of any matter in relation to the client’s financial statements. The significance of any threat created shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • Using prof...
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This document was uploaded on 04/03/2014.

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