Revised Code of Ethics in the Phils - 2010

290196 internal audit services involve assisting 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: regulation, other precedent, or established practice; • Whether the proceedings are conducted in public; and • The role management plays in the resolution of the dispute. 193 The significance of any threat created shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • Using professionals who are not members of the audit team to perform the service; • Having a tax professional, who was not involved in providing the tax service, advise the audit team on the services and review the financial statement treatment; or • Obtaining advice on the service from an external tax professional. 290.193 Where the taxation services involve acting as an advocate for an audit client before a public tribunal or court in the resolution of a tax matter and the amounts involved are material to the financial statements on which the firm will express an opinion, the advocacy threat created would be so significant that no safeguards could eliminate or reduce the threat to an acceptable level. Therefore, the firm shall not perform this type of service for an audit client. What constitutes a “public tribunal or court” shall be determined according to how tax proceedings are heard in the particular jurisdiction. 290.194 The firm is not, however, precluded from having a continuing advisory role (for example, responding to specific requests for information, providing factual accounts or testimony about the work performed or assisting the client in analyzing the tax issues) for the audit client in relation to the matter that is being heard before a public tribunal or court. Internal Audit Services General Provisions 290.195 The scope and objectives of internal audit activities vary widely and depend on the size and structure of the entity and the requirements of management and those charged with governance. Internal audit activities may include: • Monitoring of internal control – reviewing controls, monitoring their operation and recommending improvements thereto; • Examination of financial and operating information – reviewing the means used to identify, measure, classify and report financial and operating information, and specific inquiry into individual items including detailed testing of transactions, balances and procedures; • Review of the economy, efficiency and effectiveness of operating activities including nonfinancial activities of an entity; and ...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online