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Unformatted text preview: escribed in paragraph 290.222) of the second year’s audit shall beperformed. This requirement
is effective for audits or reviews of financialstatements covering years that begin on or after
December 15, 2010. Forexample, in the case of an audit client with a calendar year end, if the
totalfees from the client exceeded the 15% threshold for 2011 and 2012, the preorpost-issuance
review would be applied with respect to the audit of the 2012financial statements. Compensation and Evaluation Policies
6. Paragraph 290.229 provides that a key audit partner shall not be evaluated orcompensated based
on that partner’s success in selling non-assurance servicesto the partner’s audit client. This
requirement is effective on January 1, 2012.A key audit partner may, however, receive
compensation after January 1,2012 based on an evaluation made prior to January 1, 2012 of that
partner’ssuccess in selling non-assurance services to the audit client.] This Philippine Code (Revised 2012) is effective January 1, 2013 (the IESBA Code from which it is
based is effective January 1, 2011). The Code is subject to the following transitional
6. Public Interest Entities
Section 290 of the Code contains additional independence provisions when the audit or review
client is a public interest entity. The additional provisions that are applicable because of the new
definition of a public interest entity or the guidance in paragraph 290.26 are effective on January 1,
2014 (January 1, 2012 in the IESBA Code).
7. Partner Rotation
a. For a partner who is subject to the rotation provisions in paragraph 290.51 because the partner
meets the definition of the new term “key audit partner”, and the partner is neither the engagement
partner nor the individual responsible for the engagement quality review, the rotation provisions
are effective for the audits or reviews of financial statements for years beginning on or after
December 15, 2013 (December 15, 2011 in IESBA Code). For example, in case of an audit client with
a calendar year–end, a key audit partner, who is neither the engagement partner nor the individual
responsible for the engagement...
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This document was uploaded on 04/03/2014.
- Spring '14