Revised Code of Ethics in the Phils - 2010

Emergency situations 290174 accounting and

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Unformatted text preview: n individual who isnot a member of the audit team; or • If such services are performed by a member of the audit team, usinga partner or senior staff member with appropriate expertise who isnot a member of the audit team to review the work performed. Audit clients that are public interest entities 290.172 Except in emergency situations, a firm shall not provide to an audit clientthat is a public interest entity accounting and bookkeeping services,including payroll services, or prepare financial statements on which the firmwill express an opinion or financial information which forms the basis ofthe financial statements. 290.173 Despite paragraph 290.172, a firm may provide accounting and bookkeepingservices, including payroll services and the preparation of financial statementsor other financial information, of a routine or mechanical nature for divisions orrelated entities of an audit client that is a public interest entity if the personnelproviding the services are not members of the audit team and: (a) The divisions or related entities for which the service is provided arecollectively immaterial to the financial statements on which the firmwill express an opinion; or (b) The services relate to matters that are collectively immaterial to thefinancial statements of the division or related entity. Emergency Situations 290.174 Accounting and bookkeeping services, which would otherwise not bepermitted under this section, may be provided to audit clients in emergencyor other unusual situations when it is impractical for the audit client to makeother arrangements. This may be the case when (a) only the firm has theresources and necessary knowledge of the client’s systems and proceduresto assist the client in the timely preparation of its accounting records andfinancial statements, and (b) a restriction on the firm’s ability to provide theservices would result in significant difficulties for the client (for example,as might result from a failure to meet regulatory reporting requirements). Insuch situations, the following conditions shall be met: (...
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This document was uploaded on 04/03/2014.

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