Revised Code of Ethics in the Phils - 2010

9 sec 290151 audit clients that are pies sec 290151 of

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Unformatted text preview: threat to independence, if the loan or guarantee is made under normal lending procedures, terms and conditions, and are not past due.” 9. Sec. 290.151 Audit Clients that are PIEs Sec. 290.151 of the IESBA Code provides as follows: “In respect of an audit of a public interest entity, an individual shall not be a key audit partner for more than seven years. After such time, the individual shall not be a member of the engagement team or be a key audit partner for the client for two years. During that period, the individual shall not participate in the audit of the entity, provide quality control for the engagement, consult with the engagement team or the client regarding technical or industry-specific issues, transactions or events or otherwise directly influence the outcome of the engagement.” The PICPA National Board previously approved the following provisions recommended by the Ethics Committee (FY 2010-2011): “Sec. 290.151 Audit Clients that are PIEs “In respect of an audit of a PIE, an individual shall not be a key audit partner for more than five (5) years, unless a shorter number of years in service is required by a regulatory body.” 6 The Ethics Committee (FY 2012-2013) proposes the following provisions: “Sec. 290.151 Audit Clients that are PIEs “In respect of an audit of a PIE, an individual shall not be a key audit partner for more than seven (7) years, unless a shorter number of years in service is required by a regulatory body.” We propose the adoption of the seven (7) year term generally allowed under the IESBA Code. Many participants have expressed opinions that the Philippines should not be stricter than the IESBA Code, by adopting a shorter period of five (5) years. However, the phrase “unless a shorter number of years in service is required by a regulatory body” is added as current regulations (e.g., SEC, BSP, etc.) may require a shorter period of five years as engagement partner (EP) or a combined service as EP and engagement quality review partner, as follows: “In respect of an audit of a public in...
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This document was uploaded on 04/03/2014.

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