Revised Code of Ethics in the Phils - 2010

Inducements may take variousforms including gifts

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Unformatted text preview: necessary to eliminate the threat or reduce it to an acceptable level. Inevaluating the significance of any threat, and, when necessary, determiningthe appropriate safeguards to be applied to eliminate the threat or reduce itto an acceptable level, a professional accountant in business shall evaluatethe nature of the financial interest. This includes evaluating the significanceof the financial interest and determining whether it is direct or indirect.What constitutes a significant or valuable stake in an organization will varyfrom individual to individual, depending on personal circumstances.Examples of such safeguards include: • Policies and procedures for a committee independent of management todetermine the level or form of remuneration of senior management. • Disclosure of all relevant interests, and of any plans to trade in relevantshares to those charged with the governance of the employingorganization, in accordance with any internal policies. • Consultation, where appropriate, with superiors within the employingorganization. 120 • • Internal and external audit procedures. • 340.3 Consultation, where appropriate, with those charged with the governanceof the employing organization or relevant professional bodies. Up-to-date education on ethical issues and on the legal restrictionsand other regulations around potential insider trading. A professional accountant in business shall neither manipulate informationnor use confidential information for personal gain. SECTION 350 Inducements Receiving Offers 350.1 A professional accountant in business or an immediate or close familymember may be offered an inducement. Inducements may take variousforms, including gifts, hospitality, preferential treatment, and inappropriateappeals to friendship or loyalty. 350.2 Offers of inducements may create threats to compliance with thefundamental principles. When a professional accountant in business or animmediate or close family member is offered an inducement, the situationshall be evaluated. Self-interest threats to objectivity or confidentiality arecreated when an inducement is made in an attempt to unduly influenceactions or decisions, encourage illegal or dishonest behavior, or obtainconfidential information. Intimidation threats to objectivity orconfidentiality are created if such an inducement is accepted and it isfollowed by threats to make that offer public and damage the reputation ofeither the professional accountant in business or an immediate...
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This document was uploaded on 04/03/2014.

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