Revised Code of Ethics in the Phils - 2010

Examples of such safeguards include structuring the

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Unformatted text preview: n of the assurance engagement. The significance of the threats will depend on factors such as: • The nature of the relationship between the member of the assurance team and the close family member; • The position held by the close family member; and • The role of the professional on the assurance team. The significance of the threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • Removing the individual from the assurance team; or • Structuring the responsibilities of the assurance team so that the professional does not deal with matters that are within the responsibility of the close family member. 291.125 Threats to independence are created when a member of the assurance team has a close relationship with a person who is not an immediate or close family member, but who is a 221 director or officer or an employee in a position to exert significant influence over the subject matter information of the assurance engagement. A member of the assurance team who has such a relationship shall consult in accordance with firm policies and procedures. The significance of the threats will depend on factors such as: • The nature of the relationship between the individual and the member of the assurance team; • The position the individual holds with the client; and • The role of the professional on the assurance team. The significance of the threats shall be evaluated and safeguards applied when necessary to eliminate the threats or reduce them to an acceptable level. Examples of such safeguards include: • Removing the professional from the assurance team; or • Structuring the responsibilities of the assurance team so that the professional does not deal with matters that are within the responsibility of the individual with whom the professional has a close relationship. 291.126 Self-interest, familiarity or intimidation threats may be created by a personal or family relationship between (a) a partner or employee of the firm who is not a member of the assurance team and (b) a director or officer of the assurance client or an employee in a position to exert significant influence over the subject matter information of the assurance engagement. The existence and significance of any threat will depend on factors such as: • The nature of the relationship between the partner or employee of the firm and the director or officer or emp...
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