Revised Code of Ethics in the Phils - 2010

In all cases the individual shall not continue to

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Unformatted text preview: cant influenceover the subject matter information of the assurance engagement, andthe relevant professional is removed from the assurance team; and (c) The firm applies other safeguards when necessary to reduce anyremaining threat to an acceptable level. Examples of such safeguardsinclude: • Having a professional accountant review the work of themember of the assurance team; or • Excluding the relevant professional from any significantdecision-making concerning the engagement. The firm shall determine whether to discuss the matter with those chargedwith governance. Employment with Assurance Clients 291.128 Familiarity or intimidation threats may be created if a director or officer ofthe assurance client, or an employee who is in a position to exert significantinfluence over the subject matter information of the assurance engagement,has been a member of the assurance team or partner of the firm. 291.129 If a former member of the assurance team or partner of the firm has joinedthe assurance client in such a position, the existence and significance of anyfamiliarity or intimidation threats will depend on factors such as: • The position the individual has taken at the client; • Any involvement the individual will have with the assurance team; • The length of time since the individual was a member of the assuranceteam or partner of the firm; and • The former position of the individual within the assurance team or firm,for example, whether the individual was responsible for maintainingregular contact with the client’s management or those charged withgovernance. In all cases the individual shall not continue to participate in the firm’sbusiness or professional activities. The significance of any threats created shall be evaluated and safeguardsapplied when necessary to eliminate the threats or reduce them to anacceptable level. Examples of such safeguards include: • Making arrangements such that the individual is not entitled to anybenefits or payments from the firm, unless made in accordance withfixed pre-determined arrangements. • Making arrangements such that any amount owed to...
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