Revised Code of Ethics in the Phils - 2010

Independence requirements for assurance engagements

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Unformatted text preview: ..................................... 290.223 Contingent Fees .................................................................................................................. 290.224 Compensation and Evaluation Policies .............................................................................. 290.228 Gifts and Hospitality .......................................................................................................... 290.230 Actual or Threatened Litigation ......................................................................................... 290.231 Reports that Include a Restriction on Use and Distribution……………………………… 290.500 40 Structure of Section 290.1 This section addresses the independence requirements for audit engagements and review engagements, which are assurance engagements in which a professional accountant in public practice expresses a conclusion on financial statements. Such engagements comprise audit and review engagements to report on a complete set of financial statements and a single financial statement. Independence requirements for assurance engagements that are not audit or review engagements are addressed in Section 291. 290.2 In certain circumstances involving audit engagements where the audit report includes a restriction on use and distribution and provided certain conditions are met, the independence requirements in this section may be modified as provided in paragraphs 290.500 to 290.514. The modifications are not permitted in the case of an audit of financial statements required by law or regulation. 290.3 In this section, the term(s): (a) “Audit,” “audit team,” “audit engagement,” “audit client” and “audit report” includes review, review team, review engagement, review client and review report; and (b) “Firm” includes network firm, except where otherwise stated. A Conceptual Framework Approach to Independence 290.4 In the case of audit engagements, it is in the public interest and, therefore, required by this Code, that members of audit teams, firms and network firms shall be independent of audit clients. 290.5 The o...
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