Revised Code of Ethics in the Phils - 2010

Feesrelative size 5 paragraph 290222 provides that in

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Unformatted text preview: er serving for one more year as a key audit partner (that is,after completing the 2011 audit). 3. For an engagement partner or an individual responsible for the engagementquality control review who immediately prior to assuming either of these rolesserved in another key audit partner role for the client, and who, at thebeginning of the first fiscal year beginning on or after December 15, 2010,had served as the engagement partner or individual responsible for theengagement quality control review for six or fewer years, the rotationprovisions are effective for the audits or reviews of financial statements foryears beginning on or after December 15, 2011. For example, in the case of anaudit client with a calendar year-end, a partner who had served the client inanother key audit partner role for four years (that is, the audits of 2002– 2005)and subsequently as the engagement partner for five years (that is, the auditsof 2006–2010) would be required to rotate after serving for one more year asthe engagement partner (that is, after completing the 2011 audit). Non-assurance Services 4. Paragraphs 290.156–290.219 address the provision of non-assurance servicesto an audit or review client. If, at the effective date of the Code, services arebeing provided to an audit or review client and the services were permissibleunder the June 2005 Code (revised July 2006) but are either prohibited orsubject to restrictions under the revised Code, the firm may continueproviding such services only if they were contracted for and commenced priorto January 1, 2011, and are completed before July 1, 2011. Fees―Relative Size 5. Paragraph 290.222 provides that, in respect of an audit or review client that isa public interest entity, when the total fees from that client and its relatedentities (subject to the considerations in paragraph 290.27) for twoconsecutive years represent more than 15% of the total fees of the firmexpressing the opinion on the financial statements, a pre- or post-issuancereview (as d...
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