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Unformatted text preview: ered that a reasonable and informed third party, weighing
all the specific facts and circumstances, would consider trivial and inconsequential, a professional
accountant in public practice may conclude that the offer is made in the normal course of business
without the specific intent to influence decision making or to obtain information. In such cases,
the professional accountant in public practice may generally conclude that any threat to
compliance with the fundamental principles is at an acceptable level. 260.3 A professional accountant in public practice shall evaluate the significance of any threats and
apply safeguards when necessary to eliminate the threats or reduce them to an acceptable level.
When the threats cannot be eliminated or reduced to an acceptable level through the application
of safeguards, a professional accountant in public practice shall not accept such an offer. SECTION 270
Custody of Client Assets
270.1 A professional accountant in public practice shall not assume custody of client monies or other
assets unless permitted to do so by law and, if so, in compliance with any additional legal duties
imposed on a professional accountant in public practice holding such assets. 270.2 The holding of client assets creates threats to compliance with the fundamental principles; for
example, there is a self-interest threat to professional behavior and may be a self interest threat to
objectivity arising from holding client assets. A professional accountant in public practice
entrusted with money (or other assets) belonging to others shall therefore:
(a) Keep such assets separately from personal or firm assets; (b) Use such assets only for the purpose for which they are intended; 159 (c) (d) 270.3 At all times be ready to account for those assets and any income, dividends, or gains
generated, to any persons entitled to such accounting; and
Comply with all relevant laws and regulations relevant to the holding of and accounting for
such assets. As part of client and en...
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- Spring '14