Revised Code of Ethics in the Phils - 2010

3205 the significance of such threats will depend on

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Unformatted text preview: e employing organization. Such information mayinclude financial or management information, for example, forecasts andbudgets, financial statements, management's discussion and analysis, andthe management letter of representation provided to the auditors during theaudit of the entity’s financial statements. A professional accountant inbusiness shall prepare or present such information fairly, honestly and inaccordance with relevant professional standards so that the information willbe understood in its context. 320.2 A professional accountant in business who has responsibility for thepreparation or approval of the general purpose financial statements of anemploying organization shall be satisfied that those financial statements arepresented in accordance with the applicable financial reporting standards. 320.3 A professional accountant in business shall take reasonable steps tomaintain information for which the professional accountant in business isresponsible in a manner that: (a) Describes clearly the true nature of business transactions, assets, orliabilities; (b) Classifies and records information in a timely and proper manner; and (c) Represents the facts accurately and completely in all material respects. 320.4 Threats to compliance with the fundamental principles, for example, self-interestor intimidation threats to objectivity or professional competence anddue care, are created where a professional accountant in business ispressured (either externally or by the possibility of personal gain) to becomeassociated with misleading information or to become associated withmisleading information through the actions of others. 320.5 The significance of such threats will depend on factors such as the source ofthe pressure and the degree to which the information is, or may be,misleading. The significance of the threats shall be evaluated andsafeguards applied when necessary to eliminate them or reduce them to anacceptable level. Such safeguards include consultation with superiors wi...
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