Revised Code of Ethics in the Phils - 2010

Accordingly a when safeguards are required to reduce

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Unformatted text preview: sertion-based or directreporting, there might be several responsible parties. In determiningwhether it is necessary to apply the provisions in this section to eachresponsible party in such engagements, the firm may take into accountwhether an interest or relationship between the firm, or a member of theassurance team, and a particular responsible party would create a threat toindependence that is not trivial and inconsequential in the context of thesubject matter information. This will take into account factors such as: • The materiality of the subject matter information (or of the subjectmatter) for which the particular responsible party is responsible; and • The degree of public interest associated with the engagement. 92 If the firm determines that the threat to independence created by any suchinterest or relationship with a particular responsible party would be trivialand inconsequential, it may not be necessary to apply all of the provisionsof this section to that responsible party. Documentation 291.29 Documentation provides evidence of the professional accountant’sjudgments in forming conclusions regarding compliance with independencerequirements. The absence of documentation is not a determinant ofwhether a firm considered a particular matter nor whether it is independent. The professional accountant shall document conclusions regardingcompliance with independence requirements, and the substance of anyrelevant discussions that support those conclusions. Accordingly: (a) When safeguards are required to reduce a threat to an acceptablelevel, the professional accountant shall document the nature of thethreat and the safeguards in place or applied that reduce the threat toan acceptable level; and (b) When a threat required significant analysis to determine whethersafeguards were necessary and the professional accountant concludedthat they were not because the threat was already at an acceptablelevel, the professional accountant shall document the nature of thethreat and the rationale for the conclusion. Engagement Period 291.30 Independence from the assurance client is required both during theen...
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This document was uploaded on 04/03/2014.

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