Revised Code of Ethics in the Phils - 2010

Factors to consider include reputation expertise

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Unformatted text preview: feguards, when necessary, to eliminate them or reduce them to an acceptable level. Examples of such safeguards include: • • Acquiring knowledge of relevant industries or subject matters. • Possessing or obtaining experience with relevant regulatory or reporting requirements. • Assigning sufficient staff with the necessary competencies. • Using experts where necessary. • Agreeing on a realistic time frame for the performance of the engagement. • 210.8 Acquiring an appropriate understanding of the nature of the client’s business, the complexity of its operations, the specific requirements of the engagement and the purpose, nature and scope of the work to be performed. Complying with quality control policies and procedures designed to provide reasonable assurance that specific engagements are accepted only when they can be performed competently. When a professional accountant in public practice intends to rely on the advice or work of an expert, the professional accountant in public practice shall determine whether such reliance is warranted. Factors to consider include: reputation, expertise, resources available and applicable professional and ethical standards. Such information may be gained from prior association with the expert or from consulting others. Changes in a Professional Appointment 210.9 A professional accountant in public practice who is asked to replace another professional accountant in public practice, or who is considering tendering for an engagement currently held by another professional accountant in public practice, shall determine whether there are any reasons, professional or otherwise, for not accepting the engagement, such as circumstances that 31 create threats to compliance with the fundamental principles that cannot be eliminated or reduced to an acceptable level by the application of safeguards. For example, there may be a threat to professional competence and due care if a professional accountant in public practice accepts the engagement before knowing all the pertinent facts. 210.10 A professional accountant in public practice shall evaluate the significance of any threats. Depending on the nature of the engagement, this may require direct communication with the existing accountant to establish the facts and circumstances regarding the proposed change so tha...
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This document was uploaded on 04/03/2014.

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