Revised Code of Ethics in the Phils - 2010

Further assuming a management responsibility creates

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Unformatted text preview: a public interest entity if: (a) The previous non-assurance service complies with the provisions of this section that relate to audit clients that are not public interest entities; (b) Services that are not permitted under this section for audit clients that are public interest entities are terminated before or as soon as practicable after the client becomes a public interest entity; and (c) The firm applies safeguards when necessary to eliminate or reduce to an acceptable level any threats to independence arising from the service. Management Responsibilities 290.162 Management of an entity performs many activities in managing the entity in the best interests of stakeholders of the entity. It is not possible to specify every activity that is a management responsibility. However, management responsibilities involve leading and directing an entity, 185 including making significant decisions regarding the acquisition, deployment and control of human, financial, physical and intangible resources. 290.163 Whether an activity is a management responsibility depends on the circumstances and requires the exercise of judgment. Examples of activities that would generally be considered a management responsibility include: • Setting policies and strategic direction; • Directing and taking responsibility for the actions of the entity’s employees; • Authorizing transactions; • Deciding which recommendations of the firm or other third parties to implement; • Taking responsibility for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework; and • Taking responsibility for designing, implementing and maintaining internal control. 290.164 Activities that are routine and administrative, or involve matters that are insignificant, generally are deemed not to be a management responsibility. For example, executing an insignificant transaction that has been authorized by management or monitoring the dates for filing statutory returns and advising an audit client of those dates is deemed not to be a management responsibility. Further, providing advice and recommendations to assist management in discharging its responsibilities i...
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This document was uploaded on 04/03/2014.

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