Revised Code of Ethics in the Phils - 2010

Examples of such safeguards include removing the

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Unformatted text preview: member ofthat individual’s immediate family, of a direct financial interest or amaterial indirect financial interest in the assurance client as a trustee createsa self-interest threat. Such an interest shall not be held unless: (a) Neither the trustee, nor an immediate family member of thetrustee, nor the firm are beneficiaries of the trust; (b) The interest in the assurance client held by the trust is notmaterial to the trust; (c) The trust is not able to exercise significant influence over theassurance client; and (d) The trustee, an immediate family member of the trustee, or the firmcannot significantly influence any investment decision involving afinancial interest in the assurance client. 291.110 Members of the assurance team shall determine whether a self-interestthreat is created by any known financial interests in the assurance clientheld by other individuals including: • Partners and professional employees of the firm, other than thosereferred to above, or their immediate family members; and • Individuals with a close personal relationship with a member of theassurance team. Whether these interests create a self-interest threat will depend on factorssuch as: • The firm’s organizational, operating and reporting structure; and 96 • • The nature of the relationship between the individual and the member of the assurance team. The significance of any threat shall be evaluated and safeguards appliedwhen necessary to eliminate the threat or reduce it to an acceptable level.Examples of such safeguards include: • Removing the member of the assurance team with the personalrelationship from the assurance team; • Excluding the member of the assurance team from any significantdecision-making concerning the assurance engagement; or • Having a professional accountant review the work of the member ofthe assurance team. 291.111 If a firm, a member of the assurance team, or an immediate family memberof the individual, receives a direct financial interest or a material indirectfinancial interest in an assurance client, for...
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This document was uploaded on 04/03/2014.

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