Revised Code of Ethics in the Phils - 2010

Management responsibilities 290162 management of an

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ular non-assurance service, consideration shall be given to any threat that the audit team has reason to believe is created by providing other related non-assurance services. If a threat is created that cannot be reduced to an acceptable level by the application of safeguards, the non-assurance service shall not be provided. 290.159 Providing certain non-assurance services to an audit client may create a threat to independence so significant that no safeguards could reduce the threat to an acceptable level. However, the inadvertent provision of such a service to a related entity, division or in respect of a discrete financial statement item of such a client will be deemed not to compromise independence if any threats have been reduced to an acceptable level by arrangements for that related entity, division or discrete financial statement item to be audited by another firm or when another firm re-performs the non-assurance service to the extent necessary to enable it to take responsibility for that service. 290.160 A firm may provide non-assurance services that would otherwise be restricted under this section to the following related entities of the audit client: (a) An entity, which is not an audit client, that has direct or indirect control over the audit client; (b) An entity, which is not an audit client, with a direct financial interest in the client if that entity has significant influence over the client and the interest in the client is material to such entity; or (c) An entity, which is not an audit client, that is under common control with the audit client, if it is reasonable to conclude that (a) the services do not create a selfreview threat because the results of the services will not be subject to audit procedures and (b) any threats that are created by the provision of such services are eliminated or reduced to an acceptable level by the application of safeguards. 290.161 A non-assurance service provided to an audit client does not compromise the firm’s independence when the client becomes...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online