Revised Code of Ethics in the Phils - 2010

29123 if the firm also issues an assurance report

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Unformatted text preview: le as to thepurpose, subject matter information and limitations of the report and (b)explicitly agree to the application of the modified independencerequirements. Knowledge as to the purpose, subject matter information, andlimitations of the report may be obtained by the intended users through theirparticipation, either directly or indirectly through their representative whohas the authority to act for the intended users, in establishing the nature andscope of the engagement. Such participation enhances the ability of the firmto communicate with intended users about independence matters, includingthe circumstances that are relevant to the evaluation of the threats toindependence and the applicable safeguards necessary to eliminate thethreats or reduce them to an acceptable level, and to obtain their agreementto the modified independence requirements that are to be applied. 291.22 The firm shall communicate (for example, in an engagement letter) with theintended users regarding the independence requirements that are to beapplied with respect to the provision of the assurance engagement. Wherethe intended users are a class of users (for example, lenders in a syndicatedloan arrangement) who are not specifically identifiable by name at the timethe engagement terms are established, such users shall subsequently bemade aware of the independence requirements agreed to by therepresentative (for example, by the representative making the firm’sengagement letter available to all users). 291.23 If the firm also issues an assurance report that does not include a restrictionon use and distribution for the same client, the provisions of paragraphs291.25 to 291.27 do not change the requirement to apply the provisions ofparagraphs 291.1 to 291.159 to that assurance engagement. If the firm alsoissues an audit report, whether or not it includes a restriction on use 91 anddistribution, for the same client, the provisions of Section 290 shall apply tothat audit engagement. 291.24 The modific...
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This document was uploaded on 04/03/2014.

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