Revised Code of Ethics in the Phils - 2010

Examples of such safeguards include 93 not including

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Unformatted text preview: gagement period and the period covered by the subject matterinformation. The engagement period starts when the assurance team beginsto perform assurance services with respect to the particular engagement.The engagement period ends when the assurance report is issued. When theengagement is of a recurring nature, it ends at the later of the notification byeither party that the professional relationship has terminated or the issuanceof the final assurance report. 291.31 When an entity becomes an assurance client during or after the periodcovered by the subject matter information on which the firm will express aconclusion, the firm shall determine whether any threats to independenceare created by: (a) Financial or business relationships with the assurance client duringor after the period covered by the subject matter information butbefore accepting the assurance engagement; or (b) Previous services provided to the assurance client. 291.32 If a non-assurance service was provided to the assurance client during orafter the period covered by the subject matter information but before theassurance team begins to perform assurance services and the service wouldnot be permitted during the period of the assurance engagement, the firmshall evaluate any threat to independence created by the service. If anythreat is not at an acceptable level, the assurance engagement shall only beaccepted if safeguards are applied to eliminate any threats or reduce them toan acceptable level. Examples of such safeguards include: 93 • Not including personnel who provided the non-assurance service asmembers of the assurance team; • Having a professional accountant review the assurance and non-assurancework as appropriate; or • Engaging another firm to evaluate the results of the non-assuranceservice or having another firm re-perform the non-assurance serviceto the extent necessary to enable it to take responsibility for theservice. However, if the non-assurance service has not been completed and it is notpractical to complete or terminate the service before the commencement ofprofessional services in connection with the assurance engagement, the firmshall only accept the assurance engagemen...
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