Revised Code of Ethics in the Phils - 2010

21 to 29122 are metif the firm had a material

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Unformatted text preview: ations to the requirements of Section 291 that are permitted inthe circumstances set out above are described in paragraphs 291.25 to291.27. Compliance in all other respects with the provisions of Section 291is required. 291.25 When the conditions set out in paragraphs 291.21 and 291.22 are met, therelevant provisions set out in paragraphs 291.104 to 291.134 apply to allmembers of the engagement team, and their immediate and close familymembers. In addition, a determination shall be made as to whether threats toindependence are created by interests and relationships between theassurance client and the following other members of the assurance team: (a) Those who provide consultation regarding technical or industryspecific issues, transactions or events; and (b) Those who provide quality control for the engagement, includingthose who perform the engagement quality control review. An evaluation shall also be made, by reference to the provisions set out inparagraphs 291.104 to 291.134, of any threats that the engagement team hasreason to believe are created by interests and relationships between theassurance client and others within the firm who can directly influence theoutcome of the assurance engagement, including those who recommend thecompensation, or who provide direct supervisory, management or otheroversight, of the assurance engagement partner in connection with theperformance of the assurance engagement. 291.26 Even though the conditions set out in paragraphs 291.21 to 291.22 are met,if the firm had a material financial interest, whether direct or indirect, in theassurance client, the self-interest threat created would be so significant thatno safeguards could reduce the threat to an acceptable level. Accordingly,the firm shall not have such a financial interest. In addition, the firm shallcomply with the other applicable provisions of this section described inparagraphs 291.113 to 291.159. 291.27 An evaluation shall also be made of any threats that the firm has reason tobelieve are created by network firm interests and relationships. Multiple Responsible Parties 291.28 In some assurance engagements, whether as...
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