Revised Code of Ethics in the Phils - 2010

2915 independence comprises a independence of mind the

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Unformatted text preview: n or measurement of a subjectmatter against criteria. The International Framework for AssuranceEngagements (the Assurance Framework) issued by the InternationalAuditing and Assurance Standards Board describes the elements andobjectives of an assurance engagement and identifies engagements to whichInternational Standards on Assurance Engagements (ISAEs) apply. For adescription of the elements and objectives of an assurance engagement,refer to the Assurance Framework. 291.3 Compliance with the fundamental principle of objectivity requires beingindependent of assurance clients. In the case of assurance engagements, it isin the public interest and, therefore, required by this Code of Ethics, thatmembers of assurance teams and firms be independent of assurance clientsand that any threats that the firm has reason to believe are created by anetwork firm’s interests and relationships be evaluated. In addition, whenthe assurance team knows or has reason to believe that a relationship orcircumstance involving a related entity of the assurance client is relevant tothe evaluation of the firm’s independence from the client, the assuranceteam shall include that related entity when identifying and evaluatingthreats to independence and applying appropriate safeguards. A Conceptual Framework Approach to Independence 291.4 The objective of this section is to assist firms and members of assuranceteams in applying the conceptual framework approach described below toachieving and maintaining independence. 291.5 Independence comprises: (a) Independence of Mind The state of mind that permits the expression of a conclusion withoutbeing affected by influences that compromise professional judgment,thereby allowing an individual to act with integrity and exerciseobjectivity and professional skepticism. (b) Independence in Appearance The avoidance of facts and circumstances that are so significant thata reasonable and informed third party would be likely to conclude,weighing all the specific facts and circumstances, that a firm’s, or amember of the assurance team’s, integrity, ob...
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