Revised Code of Ethics in the Phils - 2010

A professional accountant shall use professional

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Unformatted text preview: equirements for assurance engagements that are not audit or review engagements are addressed in Section 291. 290.2 In certain circumstances involving audit engagements where the audit report includes a restriction on use and distribution and provided certain conditions are met, the independence requirements in this section may be modified as provided in paragraphs 290.500 to 290.514. The modifications are not permitted in the case of an audit of financial statements required by law or regulation. 290.3 In this section, the term(s): (a) “Audit,” “audit team,” “audit engagement,” “audit client” and “audit report” includes review, review team, review engagement, review client and review report; and (b) “Firm” includes network firm, except where otherwise stated. A Conceptual Framework Approach to Independence 290.4 In the case of audit engagements, it is in the public interest and, therefore, required by this Code, that members of audit teams, firms and network firms shall be independent of audit clients. 290.5 The objective of this section is to assist firms and members of audit teams in applying the conceptual framework approach described below to achieving and maintaining independence. 290.6 Independence comprises: (b) Independence of Mind The state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgment, thereby allowing an individual to act with integrity and exercise objectivity and professional skepticism. (b) Independence in Appearance The avoidance of facts and circumstances that are so significant that a reasonable and informed third party would be likely to conclude, weighing all the specific facts and circumstances, that a firm’s, or a member of the audit team’s, integrity, objectivity or professional skepticism has been compromised. 290.7 The conceptual framework approach shall be applied by professional accountants to: (a) Identify threats to independence; (b) Evaluate the significance of the threats identified; and 162 (c) Apply safeguards, when...
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