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Unformatted text preview: .1 A professional accountant in public practice shall not assume custody of client monies or other
assets unless permitted to do so by law and, if so, incompliance with any additional legal duties
imposed on a professional accountant in public practice holding such assets. 270.2 The holding of client assets creates threats to compliance with the fundamental principles; for
example, there is a self-interest threat to professional behavior and may be a self interest threat to
objectivity arising from holding client assets. A professional accountant in public practice
entrusted with money (or other assets) belonging to others shall therefore:
(b) Use such assets only for the purpose for which they are intended; (c) At all times be ready to account for those assets and any income, dividends, or gains
generated, to any persons entitled to such accounting; and (d) 270.3 Keep such assets separately from personal or firm assets; Comply with all relevant laws and regulations relevant to the holding of and accounting for
such assets. As part of client and engagement acceptance procedures for services that may involve the holding
of client assets, a professional accountant in public practice shall make appropriate inquiries
about the source of such assets and consider legal and regulatory obligations. For example, if the
assets were derived from illegal activities, such as money laundering, a threat to compliance with
the fundamental principles would be created. In such situations, the professional accountant may
consider seeking legal advice. PART B
280.1 A professional accountant in public practice shall determine when providing any professional
service whether there are threats to compliance with the fundamental principle of objectivity
resulting from having interests in, or relationships with, a client or its directors, officers or
employees. For example, a familiarity threat to objectivity may be created from a family or close
personal or business relationship. 280.2 A...
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This document was uploaded on 04/03/2014.
- Spring '14