Revised Code of Ethics in the Phils - 2010

Such regulation may be promulgated by any relevant

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Unformatted text preview: in compliance with the same independence requirements that apply to the audit of listed entities. Such regulation may be promulgated by any relevant regulator, including an audit regulator. The PICPA National Board previously approved the following provisions recommended by the Ethics Committee (FY 2010-2011): “Sec. 290.25 Public Interest Entities “Sec. 290 contains additional provisions that reflect the extent of public interest in certain entities. For the purpose of this section, PIE are: A. All listed entities; and B. Any entity as defined by regulation as a PIE.” The Ethics Committee (FY 2012-2013) proposes to adopt the provisions stated in the IESBA Code, which covers any entity as defined under the regulation or legislation as public interest entity. 8. Sec. 290.120 Loans and Guarantees Sec. 290.120 of the 2010 IESBA Code provides as follows: “A loan, or a guarantee of a loan, from an audit client that is a bank or a similar institution to a member of the audit team, or a member of that individual’s immediate family, does not create a threat to independence if the loan or guarantee is made under normal 5 lending procedures, terms and conditions. Examples of such loans include home mortgages, bank overdrafts, car loans and credit card balances.” The Ethics Committee (FY 2012-2013) proposes the following revisions to the IESBA Code provisions: “Sec. 290.120 Loans and Guarantees “A loan, or a guarantee of a loan, from an assurance audit client that is a bank or a similar institution, to a member of the assurance audit team or their immediate family would not create a threat to independence provided the loan, or guarantee, is made under normal lending procedures, terms and requirements. Examples of such loans include credit card obligations which are normally available to other credit card holders and fully secured car loans and housing loans which are not past due.” The phrase “which are not past due” is added to address the requirements of the Bangko Sentral ng Pilipinas (BSP) as follows: “A loan, or guarantee of a loan, from an audit client that is a bank or a similar institution, to a member of the audit team or a member of that individual’s immediate family, does not create a...
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