Revised Code of Ethics in the Phils - 2010

A member of the assurance team who has such

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Unformatted text preview: Examples of such safeguards include: • Removing the individual from the assurance team; or • Structuring the responsibilities of the assurance team so that theprofessional does not deal with matters that are within theresponsibility of the immediate family member. 291.124 Threats to independence are created when a close family member of amember of the assurance team is: • A director or officer of the assurance client; or • An employee in a position to exert significant influence over thesubject matter information of the assurance engagement. The significance of the threats will depend on factors such as: • The nature of the relationship between the member of the assuranceteam and the close family member; • The position held by the close family member; and • The role of the professional on the assurance team. The significance of the threat shall be evaluated and safeguards appliedwhen necessary to eliminate the threat or reduce it to an acceptable level.Examples of such safeguards include: • Removing the individual from the assurance team; or • Structuring the responsibilities of the assurance team so that theprofessional does not deal with matters that are within theresponsibility of the close family member. 291.125 Threats to independence are created when a member of the assurance teamhas a close relationship with a person who is not an immediate or closefamily member, but who is a 100 director or officer or an employee in a positionto exert significant influence over the subject matter information of theassurance engagement. A member of the assurance team who has such arelationship shall consult in accordance with firm policies and procedures. The significance of the threats will depend on factors such as: • The nature of the relationship between the individual and themember of the assurance team; • The position the individual holds with the client; and • The role of the professional on the assurance team. The significance of the threats shall be evaluated...
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This document was uploaded on 04/03/2014.

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