Revised Code of Ethics in the Phils - 2010

505 to 290514compliance in all other respects with

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Unformatted text preview: 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. 290.502 The firm shall communicate (for example, in an engagement letter) with theintended users regarding the independence requirements that are to be appliedwith respect to the provision of the audit engagement. Where the intended usersare a class of users (for example, lenders in a syndicated loan arrangement) whoare not specifically identifiable by name at the time the engagement terms areestablished, such users shall subsequently be made aware of the independencerequirements agreed to by the representative (for example, by the representativemaking the firm’s engagement letter available to all users). 290.503 If the firm also issues an audit report that does not include a restriction onuse and distribution for the same client, the provisions of paragraphs290.500 to 290.514 do not change the requirement to apply the provisionsof paragraphs 290.1 to 290.232 to that audit engagement. 290.504 The modifications to the requirements of Section 290 that are permitted in thecircumstances set out above are described in paragraphs 290.505 to 290.514.Compliance in all other respects with the provisions of Section 290 is required. Public Interest Entities 290.505 When the conditions set out in paragraphs 290.500 to 290.502 are met, it isnot necessary to apply the additional requirements in paragraphs 290.100 to290.232 that apply to audit engagements for public interest entities. Related Entities 290.506 When the conditions set out in paragraphs 290.500 to 290.502 are met,references to audit client do not include its related entities. However, whenthe audit team knows or has...
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This document was uploaded on 04/03/2014.

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