Revised Code of Ethics in the Phils - 2010

218 the firm shall determine whether to discuss the

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: sts in the assurance client held by other individuals including: • Partners and professional employees of the firm, other than those referred to above, or their immediate family members; and 217 • Individuals with a close personal relationship with a member of the assurance team. Whether these interests create a self-interest threat will depend on factors such as: • The firm’s organizational, operating and reporting structure; and • • The nature of the relationship between the individual and the member of the assurance team. The significance of any threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • Removing the member of the assurance team with the personal relationship from the assurance team; • Excluding the member of the assurance team from any significant decision-making concerning the assurance engagement; or • Having a professional accountant review the work of the member of the assurance team. 291.111 If a firm, a member of the assurance team, or an immediate family member of the individual, receives a direct financial interest or a material indirect financial interest in an assurance client, for example, by way of an inheritance, gift or as a result of a merger, and such interest would not be permitted to be held under this section, then: (a) If the interest is received by the firm, the financial interest shall be disposed of immediately, or a sufficient amount of an indirect financial interest shall be disposed of so that the remaining interest is no longer material, or (b) If the interest is received by a member of the assurance team, or a member of that individual’s immediate family, the individual who received the financial interest shall immediately dispose of the financial interest, or dispose of a sufficient amount of an indirect financial interest so that the remaining interest is no longer material. 291.112 When an inadvertent violation of this section as it relates to a financial interest in an assurance client occurs, it is deemed not to compromise independence if: (a) The...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online