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Unformatted text preview: financial interest in the employing organization and the value of
that financial interest could be directly affected by decisions made by the professional
accountant in business; May qualify for share options in the employing organization or performance related
bonuses if certain targets are achieved. The significance of any threat shall be evaluated and safeguards applied when necessary to
eliminate the threat or reduce it to an acceptable level. In evaluating the significance of any
threat, and, when necessary, determining the appropriate safeguards to be applied to eliminate
the threat or reduce it to an acceptable level, a professional accountant in business shall
evaluate the nature of the financial interest. This includes evaluating the significance of the
financial interest and determining whether it is direct or indirect. What constitutes a significant
or valuable stake in an organization will vary from individual to individual, depending on
personal circumstances. Examples of such safeguards include:
• Policies and procedures for a committee independent of management to determine the level
or form of remuneration of senior management. • Disclosure of all relevant interests, and of any plans to trade in relevant shares to those
charged with the governance of the employing organization, in accordance with any
internal policies. • Consultation, where appropriate, with superiors within the employing organization. • Consultation, where appropriate, with those charged with the governance of the employing
organization or relevant professional bodies. • Internal and external audit procedures.
241 • 340.3 Up-to-date education on ethical issues and on the legal restrictions and other regulations
around potential insider trading. A professional accountant in business shall neither manipulate information nor use confidential
information for personal gain. SECTION 350
350.1 A professional accountant in business or an immediate or close family member may be offered
an inducement. Inducements may take various forms, including...
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This document was uploaded on 04/03/2014.
- Spring '14