Revised Code of Ethics in the Phils - 2010

290160 a firm may provide non assurance services that

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Unformatted text preview: ting the particular circumstances. 290.158 Before the firm accepts an engagement to provide a non-assurance serviceto an audit client, a determination shall be made as to whether providingsuch a service would create a threat to independence. In evaluating thesignificance of any threat created by a particular non-assurance service,consideration shall be given to any threat that the audit team has reason tobelieve is created by providing other related non-assurance services. If athreat is created that cannot be reduced to an acceptable level by theapplication of safeguards, the non-assurance service shall not be provided. 290.159 Providing certain non-assurance services to an audit client may create athreat to independence so significant that no safeguards could reduce thethreat to an acceptable level. However, the inadvertent provision of such aservice to a related entity, division or in respect of a discrete financialstatement item of such a client will be deemed not to compromiseindependence if any threats have been reduced to an acceptable level byarrangements for that related entity, division or discrete financial statementitem to be audited by another firm or when another firm reperforms thenon-assurance service to the extent necessary to enable it to takeresponsibility for that service. 290.160 A firm may provide non-assurance services that would otherwise be restrictedunder this section to the following related entities of the audit client: (a) An entity, which is not an audit client, that has direct or indirectcontrol over the audit client; (b) An entity, which is not an audit client, with a direct financial interestin the client if that entity has significant influence over the client andthe interest in the client is material to such entity; or (c) An entity, which is not an audit client, that is under common controlwith the audit client,if it is reasonable to conclude that (a) the services do not create a self-reviewthreat because the results of the services will not be s...
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This document was uploaded on 04/03/2014.

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