Revised Code of Ethics in the Phils - 2010

Other considerations 29039 there may be occasions

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Unformatted text preview: ted by such interest or relationship and discussed the evaluation with those charged with governance; (b) Complies with the requirements of paragraph 290.35(b)–(c); and 47 (c) Ceases to be the auditor no later than the issuance of the audit report. 290.37 When addressing previous and current interests and relationships covered by paragraphs 290.33 to290.36, the firm shall determine whether, even if all the requirements could be met, the interests and relationships create threats that would remain so significant that objectivity would become promised and, if so, the firm shall cease to be the auditor. 290.38 The professional accountant shall document any interests or relationships covered by paragraphs 290.34 and 36 that will not be terminated by the effective date of the merger or acquisition and the reasons why they will not be terminated, the transitional measures applied, the results of the discussion with those charged with governance, and the rationale as to why the previous and current interests and relationships do not create threats that would remain so significant that objectivity would be compromised. Other Considerations 290.39 There may be occasions when there is an inadvertent violation of this section. If such an inadvertent violation occurs, it generally will be deemed not to compromise independence provided the firm has appropriate quality control policies and procedures in place, equivalent to those required by ISQCs, to maintain independence and, once discovered, the violation is corrected promptly and any necessary safeguards are applied to eliminate any threat or reduce it to an acceptable level. The firm shall determine whether to discuss the matter with those charged with governance. Paragraphs 290.40 to 290.99 are intentionally left blank. Application of the Conceptual Framework Approach to Independence 290.100 Paragraphs 290.102 to 290.231 describe specific circumstances and relationships that create or may create threats to independence. The paragraphs describe the potential threats and the types of safeguards tha...
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