Revised Code of Ethics in the Phils - 2010

52407 above section 250 marketing professional

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Unformatted text preview: he basis of remuneration. • 5 An advance written agreement with the client as to the basis of remuneration. Quality control policies and procedures. Contingent fees for non-assurance services provided to audit clients and other assurance clients are discussed in Sections 290 and 291 of this Code. 157 • Review by an independent third party of the work performed by the professional accountant in public practice. 240.5 In certain circumstances, a professional accountant in public practice may receive a referral fee or commission relating to a client. For example, where the professional accountant in public practice does not provide the specific service required, a fee may be received for referring a continuing client to another professional accountant in public practice or other expert. A professional accountant in public practice may receive a commission from a third party (for example, a software vendor) in connection with the sale of goods or services to a client. Accepting such a referral fee or commission creates a self-interest threat to objectivity and professional competence and due care. 240.6 A professional accountant in public practice may also pay a referral fee to obtain a client, for example, where the client continues as a client of another professional accountant in public practice but requires spet services not offered by the existing accountant. The payment of such a referral fee also creates a self-interest threat to objectivity and professional competence and due care. 240.7 The significance of the threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • • Disclosing to the client any arrangements to receive a referral fee for referring the client to another professional accountant in public practice. • 240.8 Disclosing to the client any arrangements to pay a referral fee to another professional accountant for the work referred. Obtaining advance agreement from the client for commission arrangements in connection with...
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