Revised Code of Ethics in the Phils - 2010

As part of client and engagement acceptance

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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: (a) (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 SECTION 280 Objectivity—All Services 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.

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