Revised Code of Ethics in the Phils - 2010

29113 the outcome of the evaluation or measurement of

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Unformatted text preview: n is whether to continue anengagement, the firm shall determine whether any existing safeguards willcontinue to be effective to eliminate the threats or reduce them to anacceptable level or whether other safeguards will need to be applied orwhether the engagement needs to be terminated. Whenever new informationabout a threat comes to the attention of the firm during the engagement, thefirm shall evaluate the significance of the threat in accordance with theconceptual framework approach. 291.10 Throughout this section, reference is made to the significance of threats toindependence. In evaluating the significance of a threat, qualitative as wellas quantitative factors shall be taken into account. 291.11 This section does not, in most cases, prescribe the specific responsibility ofindividuals within the firm for actions related to independence becauseresponsibility may differ depending on the size, structure and organizationof a firm. The firm is required by ISQCs to establish policies 89 andprocedures designed to provide it with reasonable assurance thatindependence is maintained when required by relevant ethical standards. Assurance Engagements 291.12 As further explained in the Assurance Framework, in an assuranceengagement the professional accountant in public practice expresses aconclusion designed to enhance the degree of confidence of the intendedusers (other than the responsible party) about the outcome of the evaluationor measurement of a subject matter against criteria. 291.13 The outcome of the evaluation or measurement of a subject matter is theinformation that results from applying the criteria to the subject matter. Theterm “subject matter information” is used to mean the outcome of theevaluation or measurement of a subject matter. For example, theFramework states that an assertion about the effectiveness of internalcontrol (subject matter information) results from applying a framework forevaluating the effectiveness of internal control, such as COSO 2 or...
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