Revised Code of Ethics in the Phils - 2010

Indirect financial interest a financial interest

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Unformatted text preview: nancial statements on which the firm will express an opinion In the case of a single entity, the financial statements of thatentity. In the case of consolidated financial statements, alsoreferred to as group financial statements, the consolidatedfinancial statements. Firm A firm may be (a)[A sole practitioner, partnership or corporation of professional accountants;]a sole proprietorship or partnership of professional accountants; (b) An entity that controls such parties, through ownership,management or other means; and (c) An entity controlled by such parties, through ownership,management or other means. Historical financial information Information expressed in financial terms in relation to a particularentity, derived primarily from that entity’s accounting system,about economic events occurring in past time periods or abouteconomic conditions or circumstances at points in time in the past. Immediate family A spouse (or equivalent) or dependent. Independence Independence is: (a) Independence of mind – the state of mind that permitsthe expression of a conclusion without being affected byinfluences that compromise professional judgment,thereby allowing an individual to act with integrity, andexercise objectivity and professional skepticism (b) Independence in appearance – the avoidance of facts andcircumstances that are so significant that a reasonable andinformed third party would be likely to conclude, weighingall the specific facts and circumstances, that a firm’s, or amember of the audit or assurance team’s, integrity,objectivity or professional skepticism has beencompromised. Indirect financial interest A financial interest beneficially owned through a collectiveinvestment vehicle, estate, trust or other intermediary overwhich the individual or entity has no control or ability toinfluence investment decisions. Key audit partner The engagement partner, the individual responsible for theengagement quality control review, and other audit partners, if any,on the engagement team who make key decision...
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This document was uploaded on 04/03/2014.

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