Revised Code of Ethics in the Phils - 2010

2007 examples of circumstances that create

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Unformatted text preview: ant in public practice include: • • A firm having prepared the original data used to generate records that are the subject matter of the assurance engagement. • A member of the assurance team being, or having recently been, a director or officer of the client. • A member of the assurance team being, or having recently been, employed by the client in a position to exert significant influence over the subject matter of the engagement. • 200.6 A firm issuing an assurance report on the effectiveness of the operation of financial systems after designing or implementing the systems. The firm performing a service for an assurance client that directly affects the subject matter information of the assurance engagement. Examples of circumstances that create advocacy threats for a professional accountant in public practice include: • The firm promoting shares in an audit client. • A professional accountant acting as an advocate on behalf of an audit client in litigation or disputes with third parties. 200.7 Examples of circumstances that create familiarity threats for a professional accountant in public practice include: • • A member of the engagement team having a close or immediate family member who is an employee of the client who is in a position to exert significant influence over the subject matter of the engagement. • A director or officer of the client or an employee in a position to exert significant influence over the subject matter of the engagement having recently served as the engagement partner. • A professional accountant accepting gifts or preferential treatment from a client, unless the value is trivial or inconsequential. • 200.8 A member of the engagement team having a close or immediate family member who is a director or officer of the client. Senior personnel having a long association with the assurance client. Examples of circumstances that create intimidation threats for a professional accountant in public practice include: • A firm being threatened with dismissal from a client engagement. 27 • • A firm being threate...
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