Revised Code of Ethics in the Phils - 2010

A professional accountant in public practice may

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 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 the sale by a third party of goods or services to the client. A professional accountant in public practice may purchase all or part of another firm on the basis that payments will be made to individuals formerly owning the firm or to their heirs or estates. Such payments are not regarded as commissions or referral fees for the purpose of paragraphs240.5−240.7 above. 36 SECTION 250 Marketing Professional Services 250.1 When a professional accountant in public practice solicits new work through advertising or other forms of marketing, there may be a threat to compliance with the fundamental principles. For example, a self-interest threat to compliance with the principle of professional behavior is created if services, achievements, or products are marketed in a way that is inconsistent with that principle. 250.2 A professional accountant in public practice shall not bring the profession into disrepute when marketing professional services. The professional accountant in public practice shall...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online