Revised Code of Ethics in the Phils - 2010

Also adetermination shall be made as to whether

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: CoCo 3(criteria), to internal control, a process (subject matter). 291.14 Assurance engagements may be assertion-based or direct reporting. In eithercase, they involve three separate parties: a professional accountant in publicpractice, a responsible party and intended users. 291.15 In an assertion-based assurance engagement, the evaluation or measurementof the subject matter is performed by the responsible party, and the subjectmatter information is in the form of an assertion by the responsible partythat is made available to the intended users. 291.16 In a direct reporting assurance engagement, the professional accountant inpublic practice either directly performs the evaluation or measurement ofthe subject matter, or obtains a representation from the responsible partythat has performed the evaluation or measurement that is not available tothe intended users. The subject matter information is provided to theintended users in the assurance report. Assertion-based Assurance Engagements 291.17 In an assertion-based assurance engagement, the members of the assuranceteam and the firm shall be independent of the assurance client (the partyresponsible for the subject matter information, and which may beresponsible for the subject matter). Such independence requirementsprohibit certain relationships between members of the assurance team and(a) directors or officers, and (b) individuals at the client in a position toexert significant influence over the subject matter information. Also, adetermination shall be made as to whether threats to independence arecreated by relationships with individuals at the client in a position to exertsignificant influence over the subject matter of the engagement. Anevaluation shall be made of the significance of any threats that the firm hasreason to believe are created by network firm4 interests and relationships. 291.18 In the majority of assertion-based assurance engagements, the responsibleparty is responsible for both the subject matter information and the subjectmatter. However, in some engagements, the responsible party may not beresponsible for the subject matter. For example, when a 2 “Internal...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online