Revised Code of Ethics in the Phils - 2010

For example in the case of an audit client with a

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Unformatted text preview: utive or equivalent); (ii) Those who provide consultation regarding technical or industry specific issues, transactions or events for the engagement; and (iii) Those who provide quality control for the engagement, including those who perform the engagement quality control review for the engagement; and (c) All those within a network firm who can directly influence the outcome of the review engagement. Special purpose financial statements Financial statements prepared in accordance with a financial reporting framework designed to meet the financial information needs of specified users. Those charged with governance The persons with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity. This includes overseeing the financial reporting process. EFFECTIVE DATE 248 Effective Date This Code is effective on January 1, 2011; early adoption is permitted. The Code is subject to the following transitional provisions: Public Interest Entities 1. Section 290 of the Code contains additional independence provisions when the audit or review client is a public interest entity. The additional provisions that are applicable because of the new definition of a public interest entity or the guidance in paragraph 290.26 are effective on January 1, 2012. For partner rotation requirements, the transitional provisions contained in paragraphs 2 and 3 below apply. Partner Rotation 2. For a partner who is subject to the rotation provisions in paragraph 290.151 because the partner meets the definition of the new term “key audit partner,” and the partner is neither the engagement partner nor the individual responsible for the engagement quality control review, the rotation provisions are effective for the audits or reviews of financial statements for years beginning on or after December 15, 2011. For example, in the case of an audit client with a calendar year-end, a key audit partner, who is neither the engagement partner nor the individual responsible for the engagement quality control review, who had served as a key audit partner for seven or more years (that is, the audits of 2003–2010), would be required to rotate after 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 engagement quality control review who immediately prior to assuming either of these roles served in another key audit par...
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This document was uploaded on 04/03/2014.

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