Revised Code of Ethics in the Phils - 2010

27 for two consecutive years represent more than 15

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: completed before July 1, 2013 (July 1, 2011 in IESBA Code). 13 4. Fees – Relative Size Paragraphs 290.222 provides that, in respect of an audit or review client that is a public interest entity, when the total fees from that client and its related entities (subject to the considerations in paragraph 290.27) for two consecutive years represent more than 15% of the total fees of the firm expressing the opinion on the financial statements, a pre- or post-issuance review (as described in paragraph 290.222) of the second year’s audit shall be performed. This requirement is effective for audits or reviews of financial statements covering years that begin on or after December 15, 2012 (December 15, 2010 in IESBA Code). For example, in the case of an audit client with calendar year end, if the total fees from the client exceeded the 15% threshold for 2013 (2011 in IESBA code) and 2014 (2012 in IESBA Code), the pre- or post-issuance review would be applied with respect to the audit of the 2014 (2012 in IESBA Code) financial statements. 5. Compensation and Evaluation Policies Paragraph 290.229 provides that a key audit partner shall not be evaluated or compensated based on that partner’s success in selling non-assurance services to the partner’s audit client. This requirement is effective on January 1, 2014 (January 1, 2012 in IESBA Code). A key audit partner may, however, receive compensation after January 1, 2014 (January 1, 2012 in IESBA Code) based on evaluation made prior to January 1, 2014 (January 1, 2012 in IESBA Code) of that partner’s success in selling non-assurance services to the audit client. - THE END - 14 C. THE PHILIPPINE CODE OF ETHICS FORPROFESSIONAL ACCOUNTANTS (AS REDRAFTED BY THE FY 2011-2012ETHICS COMMITTEE, NOW ENDORSED BY THE FY 2012-2013 ETHICS COMMITTEE) CONTENTS PREFACE ...................................................................................................................................... Page 7 PART A―GENERAL APPLICATION...
View Full Document

Ask a homework question - tutors are online